1. Wilcox Corporation reported the following results for its first three years of operation:

2017 income (before income taxes) $ 300,000

2018 loss (before income taxes) (2,700,000)

2019 income (before income taxes) 3,000,000

There were no permanent or temporary differences during these three years. Assume a corporate tax rate of 30% for 2017 and 2018, and 40% for 2019.

1. What income (loss) is reported in 2018? (Assume that it is more likely than not that 60 percent of the benefits of the loss carryforward will not be realized).