The Raven Trust Was Terminated This Year and David,the Beneficiary

The Raven Trust was terminated this year and David,the beneficiary of the corpus,received all of the trust assets.The trust had a $10,000 net operating loss; this was the only tax year in which the trust operated a business.The entity has one income beneficiary,Flo.As a result of these transactions:

A) The trust carries back the NOL to a prior tax year to offset its portfolio income.
B) Flo claims the $10,000 NOL on her Form 1040.
C) David claims the $10,000 NOL on his Form 1040.
D) The $10,000 NOL is lost forever.