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 Selection in 2018? Explain.
2018 .............................................  $40,000
2019 .............................................    25,000
2020 .............................................    25,000
2021 .............................................    25,000