A company has a $50,000 note payable due in 2 years

A company has a $50,000 note payable due in 2 years

A company has a $50,000 note payable due in 2 years. The current portion is $10,000. The non-current portion is reported as:

A. $10,000

B. $40,000

C. $50,000

D. $60,000

Answer: B

Explanation: Current portion = $10,000 (due within 1 year). Non-current = $50,000 – $10,000 = $40,000.