nformation for Hobson Corp. for the current year ($ in millions): ...
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Accounting
nformation for Hobson Corp. for the current year ($ in millions):
Income from continuing operations before tax
$
270
Loss on discontinued operation (pretax)
50
Temporary differences (all related to operating income):
Accrued warranty expense in excess of expense included in operating income
20
Depreciation deducted on tax return in excess of depreciation expense
15
Permanent differences (all related to operating income):
Nondeductible portion of entertainment expense
5
The applicable enacted tax rate for all periods is 40%. How much tax expense on income from continuing operations would be reported in Hobson's income statement?
Multiple Choice
$110 million.
$112 million.
$108 million.
$88 million.
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