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:
$$\begin{array} { c c } \text { Year } & \text { Income (Loss) } \\2009 & \$ 40,000 \\2010 & \$ 70,000 \\2011 & ( \$ 10,000 ) \end{array}$$
How much of a tax refund can Hoku Corporation receive by carrying back its 2011 loss?

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