ESC operates a chain of music shops which sell CDs in C-land where the currency is the C$. You work for the Financial Director and are responsible for producing the financial statements. You are currently drafting the financial statements for the year ending 31 December 20X1. Technology changes have had a large impact on the industry. Customers are choosing to download music rather than purchase CDs. ESC has seen a 30% drop in revenue this year, following on from falls in revenue in each of the last three years. As part of the company's strategy to manage this downturn, ESC has closed several of its shops. At the year-end the lease term on these vacated shops will expire in 10 years' time. The present value of the future rentals amounts to C$175,000. These shop premises cannot be sublet but the leases can be terminated early at a cost of C$190,000. Despite these closures, the company still has expected trading losses over the next five years amounting to C$80,000. You are preparing the financial statements for ESC and currently looking at any provisions that may be needed. Which is the correct amount that should be recognised as provisions in the financial