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Question - On April 1, 2020, Celine Company purchased a parcel of land for $8,000,000 under an installment contract. The entity made a $2,400,000 cash down-payment on April 1, 2020 and signed a 4-year 10% note for the $5,600,000 balance. The equal annual payments of principal and interest on the note totaled $1,760,000, payable on April 1 of each year from 2021 to 2024.
Required -
a) Compute the current portion of the note payable on December 31, 2020?
b) Compute the noncurrent portion of the note payable on December 31, 2021?
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