Fantino Inc

Multiple Choice

Fantino Inc.was incorporated in 2015 and adopted a calendar year for tax purposes.Here is a schedule of Fantino's taxable income for 2015 and 2016.Use Corporate tax rate schedule. In 2017,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 2015 and receive a $4,760 refund of 2015 tax.
C) Fantino can carry the net capital loss back to 2016 and receive a $5,460 refund of 2016 tax.
D) Fantino can carry the net capital loss back to 2016 and receive a $2,262 refund of 2016 tax.