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For the current year ($ in millions), Centipede Corp. had $78 in pretax accounting income. This included warranty expense of $9 and $13 in depreciation
For the current year ($ in millions), Centipede Corp. had $78 in pretax accounting income. This included warranty expense of $9 and $13 in depreciation expense. 2 million of warranty costs were incurred, and MACRS depreciation amounted to $36. In the absence of other temporary or permanent differences, what was Centipede's income tax payable currently, assuming a tax rate of 40%?
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