During 2020, Marian Company was sued by a competitor for P5,000,000 for infringement of a patent. Based on the advice of the legal counsel, the entity accrued the sum of P3,000,000 as a provision in the financial statements for the year ended December 31, 2020. Subsequently, on March 15, 2021, the Supreme Court decided in favor of the party alleging infringement of the patent and ordered the defendant to pay the aggrieved party a sum of P3,500,000 The financial statements were prepared by the entity's management on February 15, 2021 and approved by the board of directors on March 31, 2021. What amount should be recognized as accrued liability on December 31, 2020? a. 5,000,000 b. 3,500,000 c. 3,000,000 d. 1,500,000