Information for Hobson Corp. for the current year ($ in millions):
Income from continui...
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Information for Hobson Corp. for the current year ($ in millions):
Income from continuing operations before tax $215
Loss on discontinued operation (pretax) 30
Temporary differences (all related to operating income):
Accrued warranty expense in excess of expense included in operating income 70
Depreciation deducted on tax return in excess of depreciation expense 145
Permanent differences (all related to operating income):
Nondeductible portion of entertainment expense 17
The applicable enacted tax rate for all periods is 25%.
What should Hobson report as income from continuing operations?
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Answers: 3
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