Information for Hobson Corporation for the current year $($$ in millions$)$:

Income from continuing operations before tax

Loss on discontinued operation $($pretax$)$

Temporary differences $($all related to operating income$)$:

Accrued warranty expense in excess of expense included in operating income

Depreciation deducted on tax return in excess of depreciation expense

Permanent differences $($all related to operating income$)$:

Nondeductible portion of entertainment expense

The applicable enacted tax rate for all periods is $25\%.$

How should Hobson report tax on the discontinued operation?

Multiple Choice

A tax receivable of $$25$ million in the balance sheet

A tax benefit of $$25$ million to net against the $$100$ million pretax loss

A deferred tax asset of $$25$ million in the balance sheet

None of these answer choices are correct.