During year 2, Smith Co. filed suit against West, Inc. seeking
damages for patent infringement. At December 31, year 2,
Smith’s legal counsel believed that it was probable that Smith
would be successful against West for an estimated amount in the
range of $75,000 to $150,000, with all amounts in the range considered
equally likely. In March year 3, Smith was awarded
$100,000 and received full payment thereof. In its year 2 financial
statements, issued in February year 3, how should this award
be reported?