On February 10, 2010, After Issuance of Its Financial Statements

Multiple Choice

On February 10, 2010, after issuance of its financial statements for 2009, House Company entered into a financing agreement with Lebo Bank, allowing House Company to borrow up to $4,000,000 at any time through 2012.Amounts borrowed under the agreement bear interest at 2% above the bank's prime interest rate and mature two years from the date of loan.House Company presently has $1,500,000 of notes payable with First National Bank maturing March 15, 2010.The company intends to borrow $2,500,000 under the agreement with Lebo and liquidate the notes payable to First National.The agreement with Lebo also requires House to maintain a working capital level of $6,000,000 and prohibits the payment of dividends on ordinary shares without prior approval by Lebo Bank.From the above information only, the total short-term debt of House Company as of the December 31, 2010 statement of financial position date is

A) $0.
B) $1,500,000.
C) $2,000,000.
D) $4,000,000.