Home, Inc. purchased 100% of the outstanding common stock of Lander Co. for $3,700,000. The FMV of the net assets of Lander Co. was $2,000,000, and the BV of the net assets of Lander Co. was $2,700,000. The amount of gain recognized by Lander Co. on this transaction would be:

a)

$0

b)

$1,000,000

c)

$1,700,000

d)

$700,000