Use the information below to answer 3 and 4.

In 2018, Cookies n Cream reported a loss for book purposes of ($150,000). During 2018, Cookies n Cream had an estimated loss of $20,000 from a loss contingency. They also sold an investment during 2018 for which the accrued an unrealized gain of $10,000 in 2017 from increasing investments to fair value. Cookies n Cream also ha $5,000 in expenses for insurance premiums for key executives. Cookies n Cream had no taxable income in 2017. The tax rate is 40%.

3. What is cookies n Creams taxable loss?

a. ($135,000)

b. ($185,000)

c. ($125,000)

d. ($115,000)

4. What is Cookies n Creams net loss to be reported