Home, Inc. purchased 100% of the outstanding common stock of Lander Co. for $600,000. The FMV of the net assets of Lander Co. was $400,000, and the BV of the net assets of Lander Co. was $100,000. The amount of gain recognized by Lander Co. on this transaction would be:

Question 18 options:

a)

$500,000

b)

$0

c)

$600,000