Information for Hobson Corp. for the current year ($ in millions):

Income from continuing operations before tax	$	260
Loss on discontinued operation (pretax)		20
Temporary differences (all related to operating income):
Accrued warranty expense in excess of expense included in operating income		20
Depreciation deducted on tax return in excess of depreciation expense		20
Permanent differences (all related to operating income):
Nondeductible portion of entertainment expense		10

The applicable enacted tax rate for all periods is 40%. What is Hobson's income tax payable for the current year?

Multiple Choice

• $88 million.

  Incorrect

• $60 million.

• $32 million.

• $100 million.