Cregg Inc. incurred a financial and taxable loss for 2018. Cregg therefore decided to use the carryback provisions as it had been profitable up to this year. How should the amounts relate to the carryback be reported in the 2018 financial statements?

A) the reduction of the loss should be reported as a prior adjustment

B) the refund claimed should be reported as revenue in the current year

C) The refund claimed should be reported as a deferred charge and amortized over 5 years

D) the refund claim be shown as a benefit due to loss carryforward in 2018

*Please explain the answer. Thanks