Accounts payable and accrued interest 4000,000 5-year 10% Notes payable - due December 31, 2011 5,000,000 Part of the loan agreement is for Elliot to appropriate a fixed amount out of its accumulated profits and losses annually until the amount of appropriation has equaled the face of the obligation. As of December 31, 2008, Elliot Corporation has yet to comply with the loan agreement. I. In its December 31, 2008 balance sheet, Elliot should report current liabilities at a. 2,000,000 b. 2,500,000 5,000,000 d. 7,000,000 II. Assuming the lender agreed on December 31, 2008 to provide a grace period of 12 months for the entity to rectify the breach and assured Elliot Corporation that no demand of payment is to be made within the grace period, what amount of current liabilities should Elliot Corporation report in its December 31, 2008 balance sheet? a. 2,000,000 b. 2.500,000 5,000,000 d. 7,000,000