On 1/1/10, Lake Corp acquired 100% of the outstanding common stock of Shore Corp for $800,000.  On the date of the acquisition, the fair value of Shore's net assets is $820,000.  The book value of Shore's Corp.'s net assets is $760,000.  In Lake's 2010 financial statements, Lake should recognize:

a. Goodwill on the Balance Sheet.

b. A gain from a bargain purchase.

c. A reduction in certain noncurrent assets on the balance sheet.

d. An extraordinay gain.

The correct answer is B, but I though it was C??  Why???