Z Co$.$ filed suit against W Inc. in $2026$ seeking damages for patent infringement. On December $31,2026,$ legal counsel for Z believed that it was probable

that $Z$ would be successful against $W$ for an estimated amount in the range of $$30$ million to $$60$ million, with each amount in that range considered

equally likely. Z was awarded $$40$ million in April $2027.$ Z should report this award in its $2026$ financial statements, issued in March $2027$ as

Multiple Choice

a receivable and deferred revenue of $$40$ million

a receivable and revenue of $$40$ million

a disclosure of a gain contingency of $$40$ million

a disclosure of a gain contingency of an undetermined amount in the range of $$30$ million to $$60$ million