Information for Hobson Corp. for the current year ($ in millions):           Income from continuing operations before tax $ 160   Loss on discontinued operation (pretax)   20   Temporary differences (all related to operating income):       Accrued warranty expense in excess of expense included in operating income   20   Depreciation deducted on tax return in excess of depreciation expense   25   Permanent differences (all related to operating income):       Nondeductible portion of entertainment expense   10      The applicable enacted tax rate for all periods is 40%.   How much tax expense on income from continuing operations would be reported in Hobson's income statement? multiple choice: a. 66 million b. 64 million c. 68 million d. 44 million   I have tried several different ways but none of them come up with answers close to any of the ones to choose from.

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Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.