During Its First Three Years of Operations a Company Reported

During its first three years of operations a company reported income before taxes of $1,000,000 in year 1, ($1,800,000) in year 2, and $3,000,000 in year 3. The income tax rate applicable to each of the years was 40%. Assume that there weren't any temporary differences and a valuation allowance was not necessary.
-What is the amount of the deferred income tax asset reported in the year 2 year-end balance sheet if the company elected a loss carryback?

A) $720,000.
B) $320,000.
C) $400,000.
D) $0.