Answer (B) is correct . Current liabilities consist of those debts that will have to be paid in the coming year or the normal operating cycle, whichever period is longer. Examples include accounts payable, wages payable, interest payable, and income taxes payable. Bonds payable and its contra account, discount on bonds payable, would both be shown under the long-term liability classification. The total current liabilities would be $319,000 ($250,000 + $29,000 + $14,000 + $26,000).
Answer (A) is incorrect because The discount on bonds payable is erroneously deducted from the total.
Answer (C) is incorrect because The amount of $353,000 includes discount on bonds payable.
Answer (D) is incorrect because The amount of $819,000 includes bonds payable.
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What amount of current liabilities will be reported on Karen’s December 31 statement of financial position?