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

$275 64 Income from continuing operations before tax Loss on discontinued operation (pretax) Temporary differences (all related to operating income): Accrued warranty expense in excess of expense included in operating income Depreciation deducted on tax return in excess of depreciation expense Permanent differences (all related to operating income): Nondeductible portion of entertainment expense 50 105 13 ne applicable enacted tax rate for all periods is 25%. ow should Hobson report tax on the discontinued operation? Multiple Choice O A tax receivable of $16 million in the balance sheet. A tax benefit of $16 million to net against the $64 million pretax loss. A deferred tax asset of $16 million in the balance sheet. None of these answer choices are correct