Intention of liquidating investment

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Question

You have been asked to review the December 31, 2021, balance sheet for Exclusive Child Care. After completing your review, you list the following three items for discussion with your supervisor. After the discussion, determine the appropriate classification of each of these items.

An investment of $50,000 is included in current assets. Management has indicated that is has no intention of liquidating the investment in 2022.

A $100,000 note payable is listed as a long-term liability, but you have determined that the note is due in 10 equal annual installments due on March 31, 2022.

Deferred revenue of $70,000 is included as a current liability even though only two-thirds will be recognized as revenue in 2022, and the other one-third in 2023.

Reference no: EM133291096

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