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3) On December 15, 2017, an employee filed a lawsuit against Bojack Company for damages suffered when one of Bojack's equipment malfunctioned in August of 2017. The legal counsel of the company believes that it is probable that Bojack will pay the following damages: Probability Estimated Litigation Cost 50% P400,000 30% 700,000 20% 550,000 Bojack Company provided a 10% risk adjustment factor. Using the expected value method, how much is the provision that should be recognized by Bojack Company on December 31, 2017? A 1,815,000 C. 572,000 B. 1,650,000 D.520,000