Question: Information for Hobson Corporation for the current year ( $ in millions): Income from continuing operations before tax Loss on discontinued operation (pretax) Temporary differences

 Information for Hobson Corporation for the current year ( $ in
millions): Income from continuing operations before tax Loss on discontinued operation (pretax)

Information for Hobson Corporation for the current year ( $ in millions): 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 The applicable enacted tax rote for all periods is 25%. How should Hobson report tax on the discontinued operation? Multiple Choice A tax recelvable of 518 mailion in the balance sheet A tax benefit of $18 million to net against the $72 milion pretax loss Multiple Choice A tax receivable of $18 million in the bolance sheet. A tax benefit of $18 million to net against the $72 million pretax loss A deferred tax asset of $18 million in the balance sheet None of these answer choices are correct

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