On December 31,2016,L Inc

On December 31,2016,L Inc.had a $1,500,000 note payable outstanding,due July 31,2017.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 23,2017.In February 2017,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 2017.On March 13,2017,L issued its 2016 financial statements.What amount of the note payable should L include in the current liabilities section of its December 31,2016,balance sheet?

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

Correct Answer:

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