For the current year ($ in millions) , Centipede Corp. had $80 in pretax accounting income. This included warranty expense of $6 and $20 in depreciation expense. Two million of warranty costs were incurred, and MACRS depreciation amounted to $35. In the absence of other temporary or permanent differences, what was Centipede's income tax payable currently, assuming a tax rate of 40%?
A) 19.6 million.
B) 25.2 million.
C) 27.6 million.
D) 29.2 million.
Correct Answer:
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