On $1$ January $2020,$ LUXCO SA acquires from an affiliated company $($company ABC$)$ the shares it holds in company XYZ for a non$-$interest bearing loan amounting to $1,250,000$ payable in $10$ equal annual instalments of $125,000$ to be paid on $31$ December each year. Under normal market conditions prevailing at the date of the transaction, such a debt between unrelated parties would have borne annual interest at the rate of about $4\mathrm{.}3\%.$

For what amount should the participation acquired in XYZ and the debt owed to ABC be recognized and measured in the balance sheet at $31$ December $2020$ of LUXCO SA after $\backslash$table$[[$a$),$Participation: $1250000,$Debt: $1125000],[$b$),$Participation: $1000000,$Debt: $1125000],[$c$),$Participation: $1000000,$Debt: $917775]]$

d$)$ All of the above.

e$)$ None of the above.payment of the first annual instalment?