Wheat, Inc. reports a taxable and financial loss of $650,000 for 2008. Its pretax financial income for the last two years was as follows:
2006 $300,000
2007 400,000
The amount that Wheat, Inc. reports as a net loss for financial reporting purposes in 2008, assuming that it uses the carryback provisions, and that the tax rate is 30% for all periods affected, is
a. $650,000 loss.
b. $ -0-.
c. $195,000 loss.
d. $455,000 loss.