Background information first, the question is below with red arrows to highlight it:

The following information pertains to an NOL incurred by Bank of America Inc. and is used to answer questions 18 - 20. a. Presented below is a schedule showing the taxable income (TI), pretax financial income (PFI), and Federal income taxes paid for each reporting year ended December 31. Year YRO8 YR09 YR10 YR11 TI and PFI $40 20 10 (80) Income Tax Rate 20 .30 .40 .50 Taxes Paid $8 6 4 0 Note: The company has no permanent or temporary differences, and no deferred tax balances exist. b. Assume that under current Federal income tax law: 1. Corporations are permitted to carryback operating losses for 2 years. 2. Corporations are permitted to carry forward operating losses for 3 years. 3. NOL deductions are limited to 80% of taxable income in the year the deduction is claimed. c. The table below discloses the taxable income the company expects to report for each year. Also presented are the tax rates for future years which are set forth under current tax law. Year YR12 YR13 YR14 YR15 Expected Taxable Income $5 10 30 40 Income Tax Rate .60 .60 .60 .60 In accounting for the NOL, assume the company has elected to first use the carryback provisions of the law. 18. The YR11 journal entry to record the effect of the carryback election would be (round amounts to the nearest dollar): a. 7 Income Tax Refund Receivable Tax Benefit of NOL Carryback 7 32 b. Income Tax Refund Receivable Deferred Tax Liability 32 32 c. Deferred Tax Asset Tax Benefit of NOL Carryback 32 d. Income Tax Refund Receivable Deferred Tax Asset Tax Benefit of NOL 7 25 32 R e. None of the above. R The following information pertains to an NOL incurred by Bank of America Inc. and is used to answer questions 18 - 20. a. Presented below is a schedule showing the taxable income (TI), pretax financial income (PFI), and Federal income taxes paid for each reporting year ended December 31. Year YRO8 YR09 YR10 YR11 TI and PFI $40 20 10 (80) Income Tax Rate 20 .30 .40 .50 Taxes Paid $8 6 4 0 Note: The company has no permanent or temporary differences, and no deferred tax balances exist. b. Assume that under current Federal income tax law: 1. Corporations are permitted to carryback operating losses for 2 years. 2. Corporations are permitted to carry forward operating losses for 3 years. 3. NOL deductions are limited to 80% of taxable income in the year the deduction is claimed. c. The table below discloses the taxable income the company expects to report for each year. Also presented are the tax rates for future years which are set forth under current tax law. Year YR12 YR13 YR14 YR15 Expected Taxable Income $5 10 30 40 Income Tax Rate .60 .60 .60 .60 In accounting for the NOL, assume the company has elected to first use the carryback provisions of the law. 18. The YR11 journal entry to record the effect of the carryback election would be (round amounts to the nearest dollar): a. 7 Income Tax Refund Receivable Tax Benefit of NOL Carryback 7 32 b. Income Tax Refund Receivable Deferred Tax Liability 32 32 c. Deferred Tax Asset Tax Benefit of NOL Carryback 32 d. Income Tax Refund Receivable Deferred Tax Asset Tax Benefit of NOL 7 25 32 R e. None of the above. R