A lawsuit for $5 million was brought against Filler Information Services Ltd (FIS) by a customer for lost profits after an information system failure. Lawyers estimate that there is only a 5% chance that the lawsuit will result in a $5 million payment but there is a 65% chance that there will be a $1,250,000 payment and a 30% chance that the lawsuit will be dismissed with no payment. From these facts, FIS should accrue, under ASPE and IFRS respectively:

a.ASPE- $1,250,000; IFRS- $1,062,500.

b.ASPE- $0; IFRS- $0

c.ASPE- $5,000,000; IFRS- $5,000,000

d.ASPE- $0; IFRS- $1,250,000.

e.ASPE- $1,250,000; IFRS- $5,000,000