Irkalla Co. has the following liabilities at December 31, year 8: ...
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Accounting
Irkalla Co. has the following liabilities at December 31, year 8:
| Trade accounts payable | $ | 200,000 | |
| Short-term borrowings | $ | 100,000 | |
| Bank loan, payable annually over 20 years, with a current portion of $100,000 | $ | 2,000,000 | |
| Other bank loan, matures June 30, year 9 | $ | 1,000,000 | |
The bank loan of $2,000,000 requires Irkalla to maintain certain financial ratios but Irkalla has not been able to do so and is in violation of the loan agreement. The creditor has not waived its rights in regard to the loan. What amount should Irkalla report as current liabilities at December 31, year 8?
Multiple Choice
$3,300,000
$1,400,000
$3,100,000
$1,200,000
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