JK Togonon Corporation's liabilities at December 31, 2008 were as follows: Accounts payable and accrued interest P 2,000,000 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. Failure to comply with the loan agreement will make the loan payable on demand. As of December 31, 2008, JK Togonon Corporation has yet to comply with the loan agreement. In its December 31, 2008 balance sheet, Elliot should report current liabilities at*

2 points

a. 2,000,000

b. 2,500,000

c. 5,000,000

d. 7,000,000