Holbert Corporation Has $2,500,000 of Short-Term Debt It Expects to Retire

Multiple Choice

Holbert Corporation has $2,500,000 of short-term debt it expects to retire with proceeds from the sale of 75,000 shares of common stock.If the stock is sold for $20 per share subsequent to the balance sheet date, but before the balance sheet is issued, what amount of short-term debt could be excluded from current liabilities?

A) $1,500,000
B) $2,500,000
C) $1,000,000
D) $0