HG, Inc., a calendar year corporation, reported the following operating income (loss) before income tax and the enacted tax rates for the last three years of operations:

		Income		Tax rate
Year 2		$100,000		40%
Year 3		$(300,000)		30%
Year 4		$400,000		30%

There are no permanent or temporary differences between operating income (loss) for financial and income tax reporting purposes. When filing its Year 3 tax return, HG did not forgo to carryback the Year 3 loss. What amount should HG record in year 3 to account for the income tax refund receivable?

a. $0

b. $40,000

c. $120,000