For the year ended December 31, 2007, Taylor Corp. had a net operating loss of $200,000. Taxable income for the earlier years of corporate existence, computed without reference to the net operating loss, was as follows:

Taxable income

2002

$ 5,000

2003

$10,000

2004

$20,000

2005

$30,000

2006

$40,000

If Taylor makes no special election to waive a net operating loss carryback period, what amount of net operating loss will be available to Taylor for the year ended December 31, 2008?

  1. $200,000
  2. $130,000
  3. $110,000
  4. $ 95,000