Smith Corporation was incorporated in 2016. They had the following operating income and losses in 2016 through 2019: 2016: Loss of $20,000 2017: Income of $35.000 2018: Loss S65.000 2019 (expected): Income 65,000 Which of the following statements are correct? 1. Smith will pay no tax in 2016. II. Smith could elect to reduce 2017 income down to 0. III. Smith will pay no tax in 2018. IV. Smith will pay no tax in 2019. a) Statement I only is correct b) Statements I and III are correct c) Statements I, III, and IV are correct