Cali, Inc. had a $4,000,000 note payable due on March 15,
year 3. On January 28, year 3, before the issuance of its year 2
financial statements, Cali issued long-term bonds in the amount
of $4,500,000. Proceeds from the bonds were used to repay the
note when it came due. How should Cali classify the note in its
December 31, year 2 financial statements?