Answer:
Income before tax of $17,000,000
net income $12,750,000
Explanation:
Hobson income from continuing operations can be computed by eliminating transactions relating to discontinued operations from the details provided:
Income from continuing operations $215,000,0000
additional warranty expense ($70,000,000)
additional depreciation ($145,000,000)
non-deductible portion of advertising $17,000,000
income before tax $17,000,000
tax at 25%*$17 million ($4,250,000)
Net income $12,750,000
