LO.1 One of your clients, Texas, Inc., is considering electing S status. Both of Texas's equal shareholders paid $30,000 for their stock. As of the beginning of 2018, Texas's Subchapter C NOL, carryforward is $110,000. Its taxable income projections for the next few years are as follows. Will you counsel Texas to make the S election in 2018? Explain. 2018 2019 2020 2021 $40,000 25,000 25,000 25,000