Kroger's had income in 2008 of $175,000, 2009 of $150,000, 2010 of $100,000 2011 of ($275,000) and $380,000 in 2012. What is the effect on each year's income tax given the loss in 2011? Assume their tax rate is 40%.

		A.2008 $70,000 tax liability goes to 0 2009 $60,000 tax liability changes to $20,000 liability 2010 no change 2012 no change
		B.2008 no change 2009 $60,000 tax liability is changed to 0 2010 $40,000 tax liability is changed to 0 2012 $152,000 tax liability is changed to $142,000
		C.2008 no change 2009 no change 2010 $40,000 tax liability is changed to 0 2012 $152,000 tax liability is changed to $82,000 tax liability
		D.2008 no change 2009 no change 2010 no change 2012 $152,000 tax liability is reduced to $42,000