A company had a pretax accounting income of $20 million this year. This included the collection of $100 million of life insurance proceeds when several key executives died in a plane crash. This collection is not recognized as a gain for tax purposes (permanent difference). Temporary differences for the current year netted out to zero. The company has a 20% tax rate and plans to record a DTA (operating loss carryforward) for tax purposes. In the current year, the Company will report a net income of

A) $36 million.

B) $20 million.

C) $4 million.

D) $120 million.

can someone explain how to do this? thanks