Equipment originally costing $65,000 has accumulated depreciation of $25,000. If the equipment is sold for $30,000, the company should record: Smith Co. filed suit against Western, Inc. seeking damages for patent infringement. Smith's legal counsel believes it is probable that Western will have to pay $125,000, although no final settlement has yet been reached. How should Smith report this litigation? Multiple Choice As a gain for $125.000 No asset or gain is reported As both an asset and again for $125,000 As an asset for $125.000