On January 1, 2019, Wood Company granted share options to certain key employees as additional compensation. The options were for 100,000 ordinary shares of P10 par value at an option price of P15 per share. Market price of this share on January 1, 2019 was P20. The fair value of each share option on January 1, 2019 is P8. The options were exercisable immediately beginning January 1, 2019 and expire on December 31, 2020. On December 31, 2019, all share options were exercised.

Using the same information what amount of liability from lawsuit should be reported on December 31, 2019?

a.3,500,000

b.3,000,000

c.500,000

d.0