Reference no: EM132599844

Karlo Company provided the following information on December 31, 2018:

Accounts payable, net of debit balance of

P100,000 in creditors' accounts                         1,900,000

Accrued expenses                                            500,000

Bonds payable due on December 31, 2019            3,000,000

Discount on bonds payable                                  200,000

Deferred tax liability                                         400,000

Income tax liability                                              700,000

Cash dividends payable                                       800,000

Stocks dividend payable                                         300,000

Notes payable - 6% due March 1, 2019 1,500,000 Notes payable - 8% due October 1, 2019 1,000,000

Question 1: The 2018 financial statements were issued on March 31, 2019. On March 1, 2019, the 6% note was refinanced on a long term basis. Under the loan agreement for the 8% note payable, the entity has the discretion to refinance the obligation for at least twelve months after December 31, 2018. The deferred tax liability is based on temporary difference that will reversed in 2019. What amount should be reported as total current liabilities on December 31,2018?