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

Income from continuing operations before tax	$ 440
Loss on discontinued operation (pretax)	108
Temporary differences (all related to operating income):
Accrued warranty expense in excess of expense included in operating income	105
Depreciation deducted on tax return in excess of depreciation expense	215
Permanent differences (all related to operating income):
Nondeductible portion of entertainment expense	24

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 $27 million in the balance sheet

A tax benefit of $27 million to net against the $108 million pretax loss

A deferred tax asset of $27 million in the balance sheet

None of these answer choices are correct.