Claudia Ltd's Statement of Financial Position Is Shown Below

Multiple Choice

Claudia Ltd's statement of financial position is shown below.

The above balances include a receivable from Jeremy Ltd for an amount of $100,000 and a payable to Jeremy Ltd for $50,000. A debt contract with ABC Bank signed by Claudia Ltd requires a debt equity ratio of no more than 50%.
Assuming a right to set-off exists with Jeremy Ltd, what is the debt to equity ratio of Claudia Ltd?

A) 13%
B) 40%
C) 45%
D) 50%
E) All of the given answers.