47. Bottoms Up, Inc. merged into Flying High Corp. on August 31, 2015 in a transaction that qualified as an A reorganization. At that time, Bottoms Up, Inc. had accumulated net operating losses of $240,000. Flying High Corp.s taxable income without regard to the acquisition this year is $360,000. Assuming Code Section 382 does not apply, the amount of Flying High Corps taxable income that can be offset by Bottoms Up, Inc.s net operating loss is

a. $40,000. b. $120,000. c. $120,329. d. $240,000.