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

Pretax accounting income: $ 715

Pretax accounting income included:

Overweight fines (not deductible for tax purposes) 5

Depreciation expense 120

Depreciation in the tax return 360

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

Which of the following must Fremont disclose related to the income tax expense reported in the income statement ($ in millions)?

Multiple Choice

Only the total tax expense of $300.

Only the current portion of tax expense of $240

Both the current portion of the tax expense of $120 and the deferred portion of the tax expense of $60.

None of these answer choices are correct.