Answer:
The correct answer is Option C.
Explanation:
Current liabilities are those liabilities that become due and payable within a year or less than a year while long-term liabilities become payable after a year.
At the instance of the question, the note payable is a liability. Since $460,000 becomes payable on January 1 for each of the next four years out of the total of $1,840,000, it means $460,000 is a current liability while the remaining balance of $1,380,000 is long-term.
