[单选题]
During Year 2, Leader Corp. sued Cape Co. for patent infringement. On December 31, Year 2, Leader was awarded a USD500,000 favorable judgment in the suit. On that date, Cape offered to settle out of court for USD300,000 and not appeal the judgment. In February Year 3, after the issuance of its Year 2 financial statements, Leader agreed to the out-of-court settlement and received a certified check for USD300,000. In its Year 2 financial statements, how should Leader have reported these events?
A .As a gain of USD300,000.
B .As a receivable and deferred credit of USD300,000.
C .It should not be reported in the financial statements.
D .As a disclosure in the notes to the financial statements only.
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