The following information relates to Franklin Freightways for its first year of operations (data in millions of dollars): Pretax accounting income: $200 Pretax accounting income included: Depreciation expense 70 Depreciation in the tax return using MACRS: 110 The applicable tax rate is 40%. There are no other temporary or permanent differences. Franklin's net income ($ in millions) is:

a. $124

b. $120

c. $118

d. $136