Final answer:
Bahamas Airlines should report the $40.3 million debt as a long-term liability on its balance sheet, and the $8.6 million due the following year as a current liability.
Step-by-step explanation:
Bahamas Airlines should report the $40.3 million debt on its December 31, 2024, balance sheet as a long-term liability. The $8.6 million due the following year is classified as a current liability.
On the balance sheet, the $40.3 million debt would be recorded under the 'Long-term Liabilities' section. This section includes obligations that are not due within the next year. This debt represents the amount borrowed by Bahamas Airlines that will be paid back over a longer period of time.
The $8.6 million due the following year would be recorded under the 'Current Liabilities' section. This section includes obligations that are due within the next year. This debt represents the amount that Bahamas Airlines will have to repay within one year.