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On July 1, 2020, a company borrows $500,000 under a long-term loan. The $500,000 will...

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Accounting

On July 1, 2020, a company borrows $500,000 under a long-term loan. The $500,000 will be paid back in five annual instalments of $100,000 each, starting on June 30, 2021. What will be the company's long-term loan balance, shown in the long-term liability section of its statement of financial position, at December 31, 2021?

a)$400,000.

b)$350,000.

c)$300,000.

d)Cannot tell, as the interest rate on the loan has not been provided

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