Hammaker Corp. began operations in 2016 and reported taxable net income of $10 million and $4 million in 2016 and 2017, respectively. In 2018, Hammaker reports a net operating loss (NOL) of $16 million, and elects to carry back that NOL to the extent possible. The tax rate for the years 2016 through 2018 is 35%, but the enacted tax rate for 2019 and later years will be 40%. As part of year-end adjusting entries, what total tax benefit will Hammaker record as a result of the 2018 NOL?
(A) $5,700,000
(B) $4,900,000
(C) $6,400,000
(D) $5,600,000
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