liabilities

Eastern, Inc. has a twelve month operating cycle and had the following obligations on its books as of December 31, 2001: $15,000,000 was due for taxes on March 15, 2002 of which $10,000,000 was for tax expense for calendar year 2001, $3,000,000 was for tax expense which was from calendar year 1999, and $2,000,000 was for taxes which must be paid in advance for calendar year 2003. $20,000,000 of 10 percent annual interest coupon bonds were outstanding from March 31, 2002, with interest due annually on March 31 and with half of the principal due March 31, 2002 and the balance with interest due March 31, 2003. For the calendar year ended December 31, 2001, the balance sheet of Eastern Inc. will show current liabilities of: A) 25,000,000. B) 25,500,000. C) 39,000,000. D) 27,000,000.

d) All of income taxes +accrued interest + 10m of bonds

I would say A. 13,000,000 for taxes + 2,000,000 for interest + 10,000,000 for principal.

why would BS of 2001 include a liability that appears on March 2002?

10,000,000 Principal + 1,500,000 for Interest + 15,000,000 taxes = 26,500,000 what’s the answer?