Answer:
Current Liabilities = $36,000
Non-Current Liabilities = $504,000
Explanation:
Wagner company is expected to show the relevant calculations of the Mortgage in both its current and non-current liability.
Step 1: Calculations for Current Liabilities
Monthly Principal Payments = $3000
Yearly payments = $3,000 x 12 months = $36,000
Based on this calculation, the current liability of Wagner (which shows obligations due within 12 months) will show $36,000 as mortgage principal due within the current year.
Step 2: Calculations for Non-Current Liabilities
Yearly Payment = $36,000
Payment for 15 years= $36,000 x 15 = $540,000
however, since the current year liability is already showing $36,000
The Long term Liability of Wagner will show:
$540,000- $36,000 = $504,000
