What is increase in liabilities section of murphy balance

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Question - Murphy Inc. has two new liabilities. The first liability is due in one year and has a face value of $1,500,000 and present value of $1,388,889. The second liability is due in three years and has a face value of $6,000,000 and a present value of 4,507,889. What is the increase in liabilities section of Murphy Inc.'s balance sheet due to these two new liabilities?

a. $6,007,889

b. $7,388,889

c. $5,896,778

d. $7,500,000

Reference no: EM133118329

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