John owes $2million that is due on Feb. 28. His company borrows $1,600,000 on Feb. 25 (5-year note) and uses the proceeds to pay down the $2 million note and uses other cash to pay the balance. How much of the $2 million note is classified as long-term in Dec. 31 financial statements?
a. $1,600,000
b. $400,000,
c. $2,000,000
d. $0