MC Qu. 26 LO 16-01 The following information relates to Franklin Freightways for...

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

Pretax accounting income:	$270
Pretax accounting income included:
Overweight fines (not deductible for tax purposes)	9
Depreciation expense	72
Depreciation in the tax return using MACRS:	106

The applicable tax rate is 32%. There are no other temporary or permanent differences. Franklin's taxable income ($ in millions) is:

$34.

$245.

$106.

$236.