Question - On January 2 of the current year, Tulip, Inc., merged with Tree, Inc., receiving $2 million in Tree stock for all of its assets and liabilities. The Tulip shareholders now own 25% of Tree. At the time of the merger, Tulip held a capital loss carry forward of $80,000 and excess business credits of $35,000. At the end of the current year, Tree computes its taxable income before any carryovers as $600,000: $60,000 capital gains and $540,000 operating income. If the Federal long-term rate is 6%, how much of the carryovers may Tree utilize in the current year?