Alan Company acquired Pops Company for $100 million, and recognized $70 million in goodwill. When it recorded the acquisition, Alan recognized an additional liability not already reported on Pops balance sheet, for a pending lawsuit against Pops, and estimated its value at $12 million. Three months after the date of acquisition, Alan determined that the present value of the lawsuit liability was really $2 million, because of events occurring subsequent to the date of acquisition. How is this information reported?

a. Gain on acquisition of $10 million

b. Gain on lawsuit of $10 million

c. not reported

d. reduction in goodwill of $10 million