Parton Owes $2 Million That Is Due on February 28

Multiple Choice

Parton owes $2 million that is due on February 28. The company borrows $1,600,000 on February 25 (5-year note) and uses the proceeds to pay down the $2 million note and uses other cash to pay the balance. How much of the $2 million note is classified as long-term in the December 31 financial statements.

A) $2,000,000.
B) $0.
C) $1,600,000.
D) $400,000.