Radon plc is facing a claim for £500,000 from a customer, in respect of a fire the cause of which has been traced to a defective electric circuit in a refrigerator sold by Radon. The legal opinion is that the claim will succeed; but Radon will be able to reclaim 75% of the amount from Fallon who supplied the circuit-breakers which malfunctioned. How should Radon report this on its Statement of financial position?

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a £125,000 as a liability b £500,000 as a liability and £375,000 as asset c £125,000 as a provision d £500,000 as provision and £375,000 as asset