nformation for Hobson Corp. for the current year ($ in millions):

Income from continuing operations before tax	$	290
Loss on discontinued operation (pretax)		50
Temporary differences (all related to operating income):
Accrued warranty expense in excess of expense included in operating income		10
Depreciation deducted on tax return in excess of depreciation expense		20
Permanent differences (all related to operating income):
Nondeductible portion of entertainment expense		10

The applicable enacted tax rate for all periods is 40%. What is Hobson's income tax payable for the current year?

Multiple Choice

• $50 million.

• $96 million.

• $80 million.

• $110 million.