Bog Freightways and Donkeys for its first year of operations (data in millions of dollars):

Pretax accounting income: $200

Pretax accounting income included:

- Fines for overweight trucks/donkeys (never deductible for tax purposes) $5

- Depreciation expense : $70

Depreciation in the tax return using MACRS: $110

The applicable tax rate is 40%. There are no other temporary or permanent differences.

Bogo's net income (in millions) for its first year is:

a) $134

b) $124

c) $119.4

d) $118