On November 5, 2021, a Sheradez Company truck was in an accident with an auto driven by Joy. Sheradez received notice on January 15, 2022, of a lawsuit for P4,000,000 damages for personal injuries suffered by Joy. Sherader's counsel believes it is probable that Joy will be awarded an estimated amount in the range between $10,000 and P4,000,000, and no amount is a better estimate of potential liability than any other amount. The accounting year ends on December 31 and the 2021 financial statements were issued on March 31,2022. What amount of provision should Sheradez accrue on December 31, 2021? a. $4,000,000 c. 2,005,000 b. 10,000 d. Nil