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Use the following information for Questions 20 and 21: The following information relates to Franklin Freightways for its first year of operations (data in millions

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Use the following information for Questions 20 and 21: The following information relates to Franklin Freightways for its first year of operations (data in millions of dollars): Pretax accounting income: $ 195 Pretax accounting income included: Overweight fines (not deductible for tax purposes) 5 Depreciation expense 70 Depreciation in the tax return 110 The applicable tax rate is 25%. There are no other temporary or permanent differences. 20. Franklin Freightways should have recorded (S in millions): A) Tax payable of $40. B) Tax payable of $22.5. C) Tax payable of $48.75. D) Tax benefit of $10 due to the NOL. 21. Franklin's net income ($ in millions) is: A) $134. B) $147.5. C) $156.25. D) $145. Cla

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