Chestnut Corporation had $300,000 operating income and $150,000 operating expenses during the year. In addition, Chestnut had a $35,000 short-term capital gain and a $40,000 short-term capital loss. Compute Chestnuts taxable income for the year.

a. $185,000.

b. $150,000.

c. $147,000.

d. $145,000.

e. None of the above