Caesar Corporation reported income before taxes of $200,000 for the years 2013, 2014, and 2015. In 2016 they experienced a loss of $200,000. The company had a tax rate of 25% in 2013 and 2014, and a rate of 35% is 2015 and 2016. Assuming Caesar uses the carryback provisions for the net operating loss, by what amount will the income tax benefit reduce the net loss in 2016?

A) $50,000
B) $60,000
C) $70,000
D) $200,000

Answer: A
Explanation: A) 2014 rate of 25% × $(200,000) from 2014