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

Income from continuing operations before tax $ $170$

Loss on discontinued operation $($pretax$)40$

Temporary differences $($all related to operating income$)$:

Accrued warranty expense in excess of expense included in operating income $25$

Depreciation deducted on tax return in excess of depreciation expense $55$

Permanent differences $($all related to operating income$)$:

Nondeductible portion of entertainment expense $8$

The applicable enacted tax rate for all periods is $25\%.$

What should Hobson report as income from continuing operations?

Multiple Choice

$$161\mathrm{.}25$ million

$$166\mathrm{.}75$ million

$$125\mathrm{.}50$ million

$$170\mathrm{.}00$ million