Road, Inc. purchased the net assets of ACME Co. for $1,400,000 ($1,000,000 cash, $400,000 in ACME stock) directly from ACME Co.. ACME Co. had total assets with a BV of $1,000,000 and a FMV of $700,000, and total liabilities with both a BV and FMV of $300,000. The amount of gain ACME Co. will recognize from this transaction is:

Question 10 options:

a)

$1,000,000

b)

$700,000

c)

No gain, but a loss of <$100,000>

d)

$100,000