Analyze the accounting issues for the March 2022 quartely report. Provide your recommendation and analyze the impact on the March 31,2021 quartely financial report.

Lawsuit In January 2021, Tesla launched a patent infringement lawsuit against Advanced Motors Ltd. (Advanced). Tesla asserts that Advanced uses technology that is protected through the company's Model XL patent and is claiming damages of $50.0 million. A gain of $25 million was recorded in March 31st, 2021 financial statements because Tesla's in-house legal counsel believes that Tesla will win the lawsuit and be awarded damages of at least $25 million