Trey, Inc. reports a taxable loss of $140,000 for 2018. Its taxable incomes for the years 2015 through 2017 respectively were $25,000, $35,000, and $40,000. Trey has no temporary or permanent differences. Trey elects the carryback provision. Taxable income in future years is not more likely than not, and the tax rate is 30% for all periods affected. What should Trey report as Net Loss on its 2018 income statement?

Select one:

a. $98,000

b. $120,500

c. $140,000

d. $117,500

e. $110,000