Hoku Corporation (A C Corporation) Had the Following History of Income

Multiple Choice

Hoku Corporation (a C corporation) had the following history of income and loss: $\begin{array}{rr}\text { Year }&\text { Income (Loss) }\\2015 & \$ 40,000 \\2016 & \$ 70,000 \\2017 & (\$ 10,000) \end{array}$ How much of a tax refund can Hoku Corporation receive by carrying back its 2017 loss?

A) $1,500
B) $2,500
C) $3,500
D) None; it cannot carry its loss back