Quality Inc. acquires Rekless Company for $100 million in cash at the beginning of its accounting year, and records the acquisition as a merger. At the date of acquisition, Rekless reported net assets have a fair value of $15 million and previously unreported intangible assets, appropriately recognized per ASC 805, have a fair value of $10 million for technology, and $10 million for favorable leases. Six months after the acquisition, it is determined that the technology has a value of $50 million, but the favorable leases are worthless. How are these value changes reported, if both represent changes in conditions occurring subsequent to the acquisition? Select one: a. Identifiable intangibles increase, and goodwill decreases by $30 million. b. Identifiableintangibles increase $30 million and a gain of $30 million is reported in income.

c. Goodwill increases by $10 million and identifiable intangibles decrease by $10 million.

d. A loss of $10 million is reported in income and identifiable intangibles decrease by $10 million.