One of your clients is considering electing S status. Texas, Inc., is a six-year old company with two equal shareholders, both of whom paid $30,000 for their stock. Going into 2014, Texas has a $110,000 NOL carry forward from prior years. Estimated income is $40,000 for 2014 and $25,000 for each of the next three years. Should Texas make an S election for 2014? Why or why not?