On December $31,$ Year $1,$ Andover Co$.$ acquired Barrelman, Inc. Before the acquisition, a product lawsuit seeking $$10$ million in damages was filed against Barrelman. As of the acquisition date, Andover believed that it was probable that a liability existed and that the fair value of the liability was $$5$ million. What amount should Andover record as a liability as of December $31,$ Year $1?$

A$.$

$$7,500,000$

B$.$

$$5,000,000$

C$.$

$$10,000,000$

D$.$

$$0$