Ames, Inc. has $500,000 of notes payable due June 15, 20x3. Ames signed an agreement on December 1, 20x2, to borrow up to $500,000 to refinance the notes payable on a long-term basis with no payments due until 20x4. The financing agreement stipulated that borrowings may not exceed 80% of the value of the collateral Ames was providing. At the date of issuance of December 31, 20x2, financial statements, the value of the collateral was $600,000 and is not expected to fall below this amount during 2003.In Ames' December 31, 20x2, balance sheet, the obligation for these notes payable should be classified asShort term Long terma) $500,000 $0b) $100,000 $400,000c) $20,000 $480,000d) $0 $500,000