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

Pretax accounting income:	$	310
Pretax accounting income included:
Overweight fines (not deductible for tax purposes)		12
Depreciation expense		77
Depreciation in the tax return using MACRS:		122

The applicable tax rate is 39%. There are no other temporary or permanent differences. Franklin's taxable income ($ in millions) is:

Multiple Choice

$122.

$277.

$45.

$265.