Wilk Co. reported the following liabilities at December 31, 20x1:

Accounts Payable-trade - 750,000

Short-term borrowings - 400,000

Bank loan, current portion 100,000 - 3,500,000

Other bank loan, matures June 30, 20x2 - 1,000,000

The bank loan of 3,500,000 was in violation of the loan agreement. The creditor had not waived the rights for the loan. What amount should Wilk report as current liabilities at December 31, 20x1? show the solution and explain.