On 12/15/20x5, Legolas Company was informed it was probable that it would receive a $150,000 tax refund in 20x6 due to an IRS error in 20x3. Which of the following is the most proper accounting treatment of this situation on the 12/31/20x5 financial statements? Recognize revenue and a receivable for $150,000 Recognize an expense and liability for $150,000 Recognize revenue and an increase in retained earnings for $150,000 Do not recognize any amount in the financial statements