PayPo Corp sued ChayChay Corp for violating a license agreement. As of the end of 2019, the lawsuit is not settled but PayPo expects there is a high probability that they will receive a settlement between $200,000 and $500,000 within the next year. How much, if any, of the settlement should PayPo recognize as a contingent gain on the 2019 financial statements?

Select one:

$0

$200,000

$500,000

$0 but PayPo should disclose it in the financial statements

$350,000