At December 31 2010 Burr Corporation Owes 500000 On A

At December 31, 2010, Burr Corporation owes $500,000 on a note payable due February 15, 2011.

(a) If Burr refinances the obligation by issuing a long-term note on February 14 and using the proceeds to pay off the note due February 15, how much of the $500,000 should be reported as a current liability at December 31, 2010?

(b) If Burr pays off the note on February 15, 2011, and then borrows $1,000,000 on a long-term basis on March 1, how much of the $500,000 should be reported as a current liability at December 31, 2010, the end of the fiscal year?

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