Information for Hobson International Corp. for the current year ($millions):

Income from continuing operations before tax	$150
Extraordinary loss (pretax)	$ 30
Temporary differences (all relaed to operating income):
Accused warrany expense in excess of write-offs	$ 10
Included in operating income
Depreciation deducted on tax return in excess of depreciation expenses	$ 25
Permanent differences (all related to operating income):
Nondeductible portion of travel & entertainment expenses	$ 5
The applicable enacted tax rate for all periods is	40%

What should Hobson international report as net income?

a. $88 million, b. $70 million c. $72 million d. $75 million