In Return for Promising to Make Future Payments, a Firm

In return for promising to make future payments, a firm receives cash or other assets with a measurable cash-equivalent value.The firm records a long-term liability for that amount and the book value of that borrowing at any time equals the

A) future value of all the then-remaining promised payments using the historical market interest rate applicable at the time the firm originally incurred the liability.
B) current value of all the then-remaining promised payments using the historical market interest rate applicable at the time the firm originally incurred the liability.
C) present value of all the then-remaining promised payments using the market interest rate applicable at the current time.
D) present value of all the then-remaining promised payments using the historical market interest rate applicable at the time the firm originally incurred the liability.
E) future value of all the then-remaining promised payments using the using the market interest rate applicable at the current time.

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