[Isioma]

Then $6k was recognized for the year as current liability but that brings up a question what about the $3k paid in same period? I actually thought it was B myself but not recognizing the $3 was why i settled for A. i guess we stick to liability per year then even after offsetting a part of the loan.

[Isioma]

option A. he has paid the $3k in the first installment of 6 months (NOV 2004 to MAY 2005) which is the reporting period so the balance of $27k becomes his non-current liability automatically.

[Author]

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