During its first three years of operations a company reported pre-tax book income of $1,000,000 in year 1, ($1,800,000) in year 2, and $3,000,000 in year 3. The income tax rate for each of the years was 40%. Assume that there were no temporary differences (and no valuation allowance). What amount of income tax expense was reported in year 3 if the company elected a loss carryback at the end of year 2?

a. $1,200,000

b. $ 880,000

c. $ 480,000

d. $ 400,000