Fantino Inc

Multiple Choice

Fantino Inc.was incorporated in 2018 and adopted a calendar year for tax purposes.Here is a schedule of Fantino's taxable income for 2018 and (tax rate is 21% for 2019) . In 2020,Fantino generated $297,300 ordinary income and recognized a $14,000 net capital loss.Which of the following statements is true?

A) Fantino can deduct its $14,000 net capital loss only on a carryforward basis.
B) Fantino can carry the net capital loss back to 2018 and receive a $2,940 refund of 2018 tax.
C) Fantino can deduct the capital loss against its 2020 ordinary income,producing $2,940 of tax savings.
D) Fantino can carry the net capital loss back to 2019 and receive a $1,218 refund of 2019 tax.