Eliot corporation'sliabilities at December 31, 2008 were as follows:

Accounts payable and accrued interestP2,000,000

12% Note Payable issued November 1, 2006,

maturing on July 1, 2008600,000

10% Debentures payble (next annual principal

installment of P1,000,000 due on February 1,2008)7,000,000

On March 1,2008, Eliot consummated a noncancelable agreement with the lender to refinance the 12% note payable basis, on readily determinable terms that has not yet been implemented.Both parties are financially capable of honoring the agreement and there have been no violations in any of the agreement's provisions.Eliot's December 31, 2007 financial statements were issued on March 31, 2008.

In its December 31, 2007 balance sheet, Eliot should report current liabilities at

a.

P2,000,000

c.

P3,000,000

b.

P2,600,000

d.

P3,600,000