Scotia, Inc. has notes payable due June 15, Year 2 in the amount of 2 million dollars. At the financial statement date of December 31, Year 1, Scotia signed an agreement to borrow to refinance the notes payable on a noncurrent basis up to: 2 million dollars. The financing agreement called for borrowings not to exceed 85% of the value of the collateral Scotia was providing. At the date of issue of the December 31, Year 1, financial statements, the value of the collateral was 2.3 million dollars and was not expected to fall below this amount during Year 2.

Required: In its December 31, Year 1, balance sheet, Scotia should classify as current obligations notes payable in the amount of: