Choufleur Company is the defendant in a lawsuit filed by Witt in 2021 disputing the validity of a copyright held by Choufleur. At December 31, 2021, Choufleur determined that Witt would probably be successful against Tone for an estimated amount of $390,000. Appropriately, a $390,000 loss was accrued by a charge to income for the year ended December 31, 2021. On December 15, 2022, Choufleur and Witt agreed to a settlement providing for a cash payment of $250000 by Choufleur to Witt, and the transfer of Choufleur's copyright to Witt. The carrying amount of the copyright on Choufleur's accounting records was $60,000 at December 15, 2022. What would be the effect of the settlement on Choufleur's income before income tax in 2022 ? No effect $60,000 decrease $140,000 increase $80,000 increase