Reese Co. reports a taxable and pretax financial loss of $60,000 for 1999. Reese's taxable and pretax financial income and tax rates for the last three years were:

|1996 |$60,000 |30%

|1997 |60,000| 35%

|1998 |60,000 |40%

The amount that Reese should report as an income tax refund receivable in 1999, assuming that it uses the carryback provisions and that the tax rate is 45% in 1999 is:

a. $18,000

b. $21,000

c. $24,000

d. $27,000

Do not copy from Chegg and give a proper explanation.