The Essex Corp

The Essex Corp. is the plaintiff in a lawsuit claiming another company breached a contract by selling it poor quality goods. At the end of 2017, the company's attorneys tell the company that it is "probable" that the company will win the suit, and that the most likely amount it will win is $600,000. This is a material number. The proper accounting is to

A) Neither disclose anything nor accrue a gain
B) Disclose the facts, and not accrue any gain
C) Accrue a $500,000 gain, but do not make a disclosure
D) Accrue a $500,000 gain and make a disclosure of the facts