Firm a Can Acquire Firm B for $120,000 in Cash

Firm A can acquire firm B for $120,000 in cash or in shares of firm A stock. The synergy value is $36,000.
What is the value of the post-merger firm if the merger is an all-stock deal?

A) $178,000
B) $214,000
C) $334,000
D) $404,000
E) $454,000