In its first four years of operations Cordelli Resorts reported the following operating income (loss) amounts:

2013: $300,000

2014: $200,000

2015: ($850,000)

2016: $900,000

There were no other deferred income taxes in any year. In 2015, Cordelli elected to carry back its operating loss. The enacted income tax rate was 40%. In its 2016 income statement, what amount should Cordelli report as income tax expense?

A) $160,000

B) $220,000

C) $340,000

D) $360,000