During Year $2,$ Leader Corp. sued Cape Co$.$ for patent infringement. On December $31,$ Year $2,$ Leader was awarded a $$500,000$ favorable judgment in the suit. On that date, Cape offered to settle out of court for $$300,000$ and not appeal the judgment. In February Year $3,$ after the issuance of its Year $2$ financial statements, Leader agreed to the out$-$of$-$court settlement and received a certified check for $$300,000.$ In its Year $2$ financial statements, how should Leader have reported these events?