Information for Hobson Corp. for the current year ($ in millions): Income from continuing operations before tax $ 180 Loss on discontinued operation (pretax) 30 Temporary differences (all related to operating income): Accrued warranty expense in excess of expense included in operating income 35 Depreciation deducted on tax return in excess of depreciation expense 75 Permanent differences (all related to operating income): Nondeductible portion of entertainment expense 10 The applicable enacted tax rate for all periods is 25%. How much tax expense on income from continuing operations would be reported in Hobson's income statement? (Round the final answer to 2 decimal places.)

Multiple Choice

$37.50 million.

$46.25 million.

$40.00 million.

$47.50 million.