Chico is a corporation operating in several states on the accrual basis. Chico received a state income tax refund this year, in 2010, in the form of a check from the state. Based on the following sequence of events, in which tax year does Chico recognize the refund as gross income?

2007: Generated the operating loss.

2008: Filed the loss carryback form with the state.

2009: Received notice that the refund was approved.

2010: Received the refund check.