On December 31, 2020, Gumble Ltd

Multiple Choice

On December 31, 2020, Gumble Ltd. has $ 3,150,000 in short-term notes payable due on February 14, 2021. On January 10, 2021, Gumble arranged a line of credit with Caldi Bank, which allows Gumble to borrow up to $ 2,000,000 at 2% above the prime rate for three years. On February 2, 2021, Gumble borrowed $ 1,400,000 from Caldi Bank and used $ 600,000 additional cash to liquidate $ 1,200,000 of the short-term notes payable. Assuming Gumble adheres to IFRS, the amount of the short-term notes payable that should be reported as current liabilities on Gumble's December 31, 2020 statement of financial position (to be issued on March 5, 2021) is

A) $ 0.
B) $ 600,000.
C) $ 1,400,000.
D) $ 3,150,000.