A Customer of Razor Sharpeners Alleges That Razor's New Razor

Multiple Choice

A customer of Razor Sharpeners alleges that Razor's new razor sharpener had a defect that resulted in serious injury to the customer. Razor believes the customer has a 51% chance of winning the case, and that if the customer wins the case, there is a range of losses of between $1,000,000 and $3,000,000 in which any number is equally likely to occur. Under IFRS, Razor should accrue a liability in the amount of:

A) $0.
B) $1,000,000.
C) $2,000,000.
D) $3,000,000.