Response to the following problem:
The Sun Construction Company borrowed $1,200,000 on July 1, 2007, at an annual interest rate of 12%. The note payable is to be repaid in annual installments of $300,000, plus accrued interest, on each June 30th beginning June 30, 2008, until the note is paid in full (on June 30, 2011).
Determine the current liabilities disclosed on the December 31, 2007, balance related to this transaction.