Pump It Up Ltd Owes Under Ground Oil $170 000

Multiple Choice

Pump It Up Ltd owes Under Ground Oil $170 000 and Under Ground Oil owes Pump It Up Ltd $350 000. Pump It Up Ltd's financial position before these amounts are set-off is:

What is the debt/equity ratio for Pump It Up Ltd before and after set-off?

A) Before set-off: 75 per cent; after set-off: 47 per cent
B) Before set-off: 43 per cent; after set-off: 27 per cent
C) Before set-off: 134 per cent; after set-off: 210 per cent
D) Before set-off: 43 per cent; after set-off: 32 per cent
E) None of the given answers.