Analyzing a Gain Contingency During the year, a driver for Commuters Inc. was involved in an accident. Commuters Inc. brought a suit against the negligent party for $1 million. The suit is pending on December 31, 2020. Commuters Inc. believes it is virtually certain that it will receive a settlement of $1 million. How should this potential gain be treated for financial statement purposes on December 31, 2020? Choose the most appropriate accounting treatment from the following options. Select one: a. Accrue potential gain in the income statement. b. Disclose potential gain in the notes accompanying the financial statements. C. Do not accrue or disclose the potential gain in the financial statements. d. Either a or b. e. Either b or c