The following information relates to Franklin Freightways for its first year of operations (data in millions of dollars):
Pretax accounting income: $300
Pretax accounting income included:
Overweight fines (not deductible for tax purposes) 6
Depreciation expense 64
Depreciation in the tax return using MACRS: 112
The applicable tax rate is 37%. There are no other temporary or permanent differences.
Franklin's taxable income is:
a) $258.
b) $252.
c) $112.
d) $48.