Valencia Corporation Has the Following Liabilities at December 31, 2011

Multiple Choice

Valencia Corporation has the following liabilities at December 31, 2011: Valencia's December 31, 2011 financial statements were issued on March 19, 2012.On January 23, 2012, the entire €1,150,000 balance of the 8.9% note was refinanced by issuance of a long-term obligation payable in a lump sum.In addition, on December 29, 2011, Valencia consummated a non-cancelable agreement with the lender to refinance the 7.25%, €1,080,000 note on a long-term basis, on readily determinable terms that have not yet been implemented.On the December 31, 2011 statement of financial position, the amount of these notes payable that Valencia should classify as short-term obligations is

A) $0.
B) $1,080,000.
C) $1,150,000.
D) $2,230,000.