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Question 5 (1 point) An employee of Riker Goods Ltd. (Riker) is suing the company for termination without cause. The employee is suing for $2,700,000 for severance and defamation of character. Riker's lawyers estimate that the company will be held liable with an 80% probability. Counsel estimates that there is a 15% probability that the court would award $1,500,000, a 25% probability that $1,000,000 would be awarded, and a 60% probability that $800,000 would be awarded. Riker follows IFRS. Which one of the following is the proper accounting treatment for this lawsuit? ) a) Record a provision for $800,000, and disclose the nature of the lawsuit. a, a, ) b) Record a provision for $955,000, and disclose the nature of the lawsuit. a, ) ) Record a provision for $1,500,000, and disclose the nature of the lawsuit. eo d) Record a provision for $2,700,000, and disclose the nature of the lawsuit