2. A Corp. had the following liabilities at December 31, year 2: Accounts payable $55,000 Unsecured notes, 8%, due 7/1/Y3 400,000 Accrued expenses 35,000 Contingent liability 450,000 Deferred income tax liability 25,000 Senior bonds, 7%, due 3/31/Y3 1,000,000 The contingent liability is an accrual for possible losses on a $1,000,000 lawsuit filed against A. A's legal counsel expects the suit to be settled in year 4, and has estimated that A will be liable for damages in the range of $450,000 to $750,000. The deferred income tax liability is not related to an asset for financial reporting and is expected to reverse in year 4. What amount should A report in its December 31, year 2 balance sheet for current liabilities? a. $515,000 b. $940,000 c. $1,490,000 d. $1,515,000