On February 10, 2020, After Issuance of Its Financial Statements

Multiple Choice

On February 10, 2020, after issuance of its financial statements for calendar 2019, Mantack Corp. entered into a financing agreement with Friedman Bank, allowing Mantack Corp. to borrow up to $ 4,000,000 at any time through 2022. Amounts borrowed under the agreement bear interest at 3% above the bank's prime interest rate and mature two years from the date of the loan. Mantack presently has $ 1,500,000 of notes payable with Bringham Bank maturing March 15, 2021. The company intends to borrow $ 2,500,000 under the agreement with Friedman and pay off the notes payable to Bringham. The agreement with Friedman also requires Mantack to maintain a working capital level of $ 9,000,000 and prohibits the payment of dividends on common shares without prior approval by Friedman. From the above information only, the total short-term debt of Mantack Corp. on the December 31, 2019 statement of financial position is

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