One third of Theta Corporation acquired six years ago with each shareholder's basis being $20,000. Alpha purchases Theta noncash assets for $100,000 and gives three notes of $300,000.Theta retains $50,000 cash and noncash assets have a FMV of $400,000 and adjusted basis of $280,000, and its liabilities are $100,000. What is Theta aggregate gain, if Alpha elects IRC 338 status?

$9,600

$40,800

$120,000

$400,000