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

Pretax accounting income:	$	150
Pretax accounting income included:
Overweight fines (not deductible for tax purposes)		5
Depreciation expense		65
Depreciation in the tax return using MACRS:		112

The applicable tax rate is 38%. There are no other temporary or permanent differences. Franklin's taxable income ($ in millions) is:

Multiple Choice

$108.

$47.

$112.

$103.