Royal Corporations liabilities at 12/31/Y1 were as follows:

Trade accounts payable	$100,000
16% notes payable issued 11/1/Y1, maturing 7/1/Y2	30,000
14% debentures payable issued 2/1/Y1; final installment due 2/1/Y5; balance at 12/31/Y1, including annual installment of $50,000 due 2/1/Y2	300,000
	$430,000

Royals 12/31/Y1, financial statements were issued on 3/31/Y2. On 1/5/Y2 the entire $300,000 balance of the 14% debentures was refinanced by issuance of a long-term obligation. In addition, on 3/1/Y2, Royal consummated a noncancelable agreement with the lender to refinance the 16% note payable on a long-term basis, on readily determinable terms that have not yet been implemented. Both parties are financially capable of honoring the agreement, and there have been no violations of any of the agreements provisions. The total amount of Royals short-term obligations that may properly be excluded from current liabilities at 12/31/Y1 is

	$0
	$30,000
	$50,000
	$80,000

This Answer is Correct (Answer is D, $80,000)

This answer is correct. Per ASC 470-10-45-14, an enterprise may exclude a short-term obligation from current liabilities only if (1) it intends to refinance the obligation on a long-term basis and (2) it demonstrates an ability to consummate the refinancing. The $50,000 current installment of the 14% debentures qualify for exclusion because those debentures were actually refinanced on a long-term basis. When a financing agreement is used to provide evidence of ability to consummate, the agreement must: be noncancelable, be long-term, and possess readily determinable terms. In addition, the company must not be in violation of the agreement, and both the lender and investor must be financially capable of honoring the agreement. Since all these requirements are met by the described financing agreement, the $30,000 note payable may also be excluded from current liabilities. Therefore, $80,000 would be properly excluded.

Questions:

I'm having a hard time understanding this question but can please explain an a very easy way and in details why the answer would not include the entire $300,000 balance of the 14% debentures and instead only includes the $50,000 current installment of the 14% debentures and the $30,000 note payable regardless of the explanation above because I don't understand it? Also why don't they consider the trade accounts payable of $100,000 as a part of the answer? Is it because it's just a current liability and nothing else?