Blette Company is the defendant in a lawsuit filed by Kale in 2021 disputing the validity of a copyright held by Blette. At December 31, 2021, Blette determined that Kale would probably be successful against Tone for an estimated amount of $420,000. Appropriately, a $420,000 loss was accrued by a charge to income for the year ended December 31, 2021. On December 15, 2022, Blette and Kale agreed to a settlement providing for a cash payment of $270,000 by Blette to Kale, and the transfer of Blette's copyright to Kale. The carrying amount of the copyright on Blette's accounting records was $80,000 at December 15, 2022. What would be the effect of the settlement on Blette's income before income tax in 2022 ? $150,000 increase $70,000 increase No effect $80,000 decrease