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

Income from continuing operations before tax	$150
Loss on discontinued operation (pretax)	30
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	25
Permanent differences (all related to operating income):
Nondeductible portion of entertainment expense	5
The applicable enacted tax rate for all periods is 40%.

How should Hobson report tax on the discontinued operation?

A tax receivable of $12 million in the balance sheet.

A tax benefit of $12 million to net against the $30 million pretax loss.

A deferred tax asset of $12 million in the balance sheet.

None of these answer choices are correct.