On December 31, 2013, L Inc

Multiple Choice

On December 31, 2013, L Inc. had a $1,500,000 note payable outstanding, due July 31, 2014. L borrowed the money to finance construction of a new plant. L planned to refinance the note by issuing long-term bonds. Because L temporarily had excess cash, it prepaid $500,000 of the note on January 23, 2014. In February 2014, L completed a $3,000,000 bond offering. L will use the bond offering proceeds to repay the note payable at its maturity and to pay construction costs during 2014. On March 13, 2014, L issued its 2013 financial statements. What amount of the note payable should L include in the current liabilities section of its December 31, 2013, balance sheet?

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