Alpha Company Reported Net Incomes in 2010 and 2011 Before

Alpha Company reported net incomes in 2010 and 2011 before sustaining a significant operating loss in 2012. All of the 2012 loss can be carried back against the income of 2010 and 2011 for purposes of determining the company's 2009 income tax liability. How should the carryback be presented in the company's 2012 financial statements?

A) As an extraordinary item in the income statement
B) As a revenue from operations in the income statement
C) As the correction of an error in the retained earnings statement
D) As a reduction in the operating loss on the income statement for the year 2012