Lister Company intends to refinance a portion of its current debt in Year 2 and is negotiating a long-term financing agreement with a local bank. This agreement would be noncancelable and would extend for a period of 2 years. The amount of current debt that Lister Company can exclude from its statement of financial position at December 31, Year 1, A. May exceed the amount available for refinancing under the agreement. B. Depends on the demonstrated ability to consummate the refinancing. C. Must be adjusted by the difference between the present value and the market value of the current debt. D. Is zero unless the refinancing has occurred by year end.

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