In 20x1, an entity, a defendant, recognized a 100,000 provision for estimated losses from a pending lawsuit. In 20x2, the entity wins the lawsuit and pays nothing. Which of the following statements is correct in 20x2?

a. The entity shall restate its 20x1 financial statements to remove the provision.

b. The entity shall recognize a gain of 100,000 in 20x2.

c. The entity shall recognize a 100,000 deduction in its 20x2 expenses.

d. The entity shall only disclose the event in its 20x2 financial statements.