Billingsworth Corporation Has the Following Net Capital Gains and Losses $$\begin{array} { c c c c } 2015 & 2016 & 2017 & 2018 \\\$ 8,000 & \$ 3,000 & \$ 6,500 & \$ ( 9,000 )\end{array}$$

Multiple Choice

Billingsworth Corporation has the following net capital gains and losses for 2015 through 2018. Billingsworth' marginal tax rate is 34% for 2015 to 2017 and is 21% in 2018.
?
$$\begin{array} { c c c c } 2015 & 2016 & 2017 & 2018 \\\$ 8,000 & \$ 3,000 & \$ 6,500 & \$ ( 9,000 ) \end{array}$$
In 2018, Billingsworth Corporation earned net operating income of $30,000. What is/are the tax effect(s) of the $9,000 net capital loss in 2018?
I.Corporate taxable income is $21,000.
II.The net capital loss will provide income tax refunds totaling $3,060.
?

A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements are correct.
D) Neither statement is correct.