I have a question about accounting income and taxable income. The question says that overweight fines (not deductible for tax purposes) are included in pretax accounting income, but the answer is the amount with adding the overweight fines. I researched many solutions for explanation and most of all answers added the overweight fines. Why it needs to be added again?

The following information relates to Franklin Freightways for its first year of operations (data in millions of dollars):

Pretax accounting income $200

Pretax accounting income included:

Overweight fines (not 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.

10.Franklin's taxable income ($ in millions) is:

A.$40.

B.$165.

C.$110.

D.$160.