Resinback Inc. reported pretax accounting income of $30 million for the year ended December 31, 2021. The company has three different temporary differences. Tax depreciation exceeds book depreciation by $20 million in 2021 for the business complex acquired that year. This amount is scheduled to be $40 million in 2022 and to reverse as ($30 million) and ($30 million) in 2023 and 2024, respectively. Advertising costs of $6 million were pre-paid during 2021. A $4 million loss relating to a lawsuit was accrued in 2021. No temporary differences existed at the beginning of 2021. The tax rate is 25%.

Question: How much is income tax expense for 2021?

$5.5 million

$9.5 million

$27 million

$7.5 million