At December 31, 20x1, Pitchfork Company reports the following balances for its liability accounts:

7% note payable issued Oct. 1, 20x1 maturing Sept. 30, 20x2 $375,000

8% note payable issued Apr 1, 20x1, payable in 6 equal annual installments of $225,000 beginning April 1, 20x2 $900,000

On December 1, 20x1, the entire $900,000 balance of the 8% note was refinanced by issuance of a note payable to be paid in one lump sum due April 1, 20x7. In addition, on December 10, 20x1, Pitchfork began discussions with the bank to refinance the 7% note payable on a long-term basis. No agreement had been reached at December 31, 20x1.

What is the amount of the notes payable that should be recorded as a current liability on the December 31, 20x1, Balance Sheet?

Answer choices:

$375,000

$-0-

$600,000

$1,275,000