Reynolds Corp. acquired the assets of Putvan Corp. in a nontaxable merger transaction on December 1, 2016. On the date of acquistion, Putvan had a net operating loss carry over of $500,000.
Reynolds had taxable income of $480,000 for its calendar year without regard to the acquired net operating loss.
Assuming Sec. 382 does not apply, how much of t he aquired loss can Reynolds use to offset its taxable income for 2016?