On June 30, 2020, Kovacs Company borrowed $440,000 at a bank by signing a five-year, 10% loan. The terms of the loan require equal semi-annual principal payments plus interest beginning December 31, 2020. The loan agreement requires the company to maintain a current ratio of 2.5. The December 31, 2020, year-end statement of financial position, immediately prior to the bank loan repayment and the reclassification of long-term debt, follows: Current assets $202,500 Current liabilities $45,000 Non-current assets 513,500 Loan payable 440,000 Common shares 135,000 Retained earnings 96,000 Total liabilities and Total assets $716,000 shareholders' equity $716,000