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

Income from continuing operations before tax	$	190
Loss on discontinued operation (pretax)		50
Temporary differences (all related to operating income):
Accrued warranty expense in excess of expense included in operating income		10
Depreciation deducted on tax return in excess of depreciation expense		20
Permanent differences (all related to operating income):
Nondeductible portion of entertainment expense		5

The applicable enacted tax rate for all periods is 40%. How much tax expense on income from continuing operations would be reported in Hobson's income statement?

Multiple Choice

• $74 million.

• $78 million.

• $76 million.

• $66 million.