Consider the following income statement for Kroger Inc. (all figures in $ millions):

Year	2006	2005	2004
Total Sales	60,553	56,434	53,791
Cost of goods sold	45,565	42,140	39,637
Selling, general & admin expenses	11,688	12,191	11,575
Depreciation	1,265	1,256	1,209
Operating Income	2,035	847	1,370
Other Income	0	0	0
EBIT	2,035	847	1,370
Interest expense	510	557	604
Earnings before tax	1,525	290	766
Taxes (35%)	534	102	268
Net Income	991	189	498

1. The interest rate tax shield for Kroger in 2005?

2. Is Kroger tax shield for 2005 close to:

A) 362m

B) 36m

C)102m

D)195M

(Please provide formula, step-by-step process And no excel spreadsheets)