The following information relates to Acme Corp. for its first year of operations (data in millions of dollars):

Pretax accounting income:

Pretax accounting income included:

Overweight fines (not deductible for tax purposes)

Depreciation expense

Depreciation in the tax return

$ 195

5

70

110

The applicable tax rate is 25%. There are no other temporary or permanent differences.

Acme Corp. should have recorded ($ in millions):

Multiple Choice

Tax payable of $40

Tax benefit of $10 due to the NOL.

Tax payable of $22.5.

(

Tax payable of $48.75.