Income from continuing operations before tax $150
Extraordinary loss (pretax) 30
Temporary differences (all related to operating income):
Accrued warranty expense in excess of write-offs
included in operating income 10
Depreciation deducted on tax return in excess of depreciated expense 25
Permanent differences (all related to operating income):
Nondeductible portion of travel & entertainment expense 5
The applicable enacted tax rate for all periods is 40%.

What is Hobson's income tax payable for the current year?
A. $52 million
B. $50 million
C. $44 million
D. $48 million

Answer rating: 100% (QA)

Answer Income from continuig operations before tax 150 Less Extraordinary Loss pre... View the full answer