Kelly Corporation, not a personal service corporation, has the following facts: In 2017, its first year of operations, Kelly Corporation had taxable income of $25,000. In 2018, Kelly Corporation has a net operating loss of $15,000 In 2019, Kelly Corporation has taxable income of $90,000.

What options does Kelly have with respect to its NOL generated in 2016 (pre tax reform)?

a Kelly can carry it back to 2015 and forward to 2017 b Kelly can carry it forward to 2017 c Kelly can only carry it back to 2015 d Both a and b

If Kelly Corporation can carry the net operating loss back to 2015, Kelly Corporation's revised tax liability (using pre tax reform corporate tax rates) for 2015 will be

a Kelly cannot carryback the loss, so its liability is the same, $3,750 b $1,500 c $13,750 d $18,850