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On December 31, 2011, Largo, Inc. had a $750,000 note payable outstanding, due July 31, 2012. Largo borrowed the money to finance construction of a new plant. Largo planned to refinance the note by issuing long-term bonds. Because Largo temporarily had excess cash, it prepaid $250,000 of the note on January 12, 2012. In February 2012, Largo completed a $1,500,000 bond offering. Largo will use the bond offering proceeds to repay the note payable at its maturity and to pay construction costs during 2012. On March 3, 2012, Largo issued its 2011 financial statements. What amount of the note payable should Largo include in the current liabilities section of its December 31, 2011 balance sheet?
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