Radon plc is facing a claim from a customer, in respect of a fire the cause of which has been traced to defective electric circuit in a refrigerator sold by Radon. The lawyers have estimated that the company will be obliged to pay N$500,000 but the amount will be confirmed when the company receives notice from court but Radon will be able to re-claim 75% of the amount from Fallon who supplied the circuit- breakers which malfunctioned. How should Radon report this on its Statement of financial position? O a. N$500,000 as a liability and N$375,000 as asset O b. N$125,000 as a provision O d. N$125,000 as a liability e. N$500,000 as a provision and N$375,000 as asset