Answer:
104 million
Explanation:
A = Income from continuing operations before tax
B = Accrued warranty expense in excess of expense included in operating income
C = Depreciation deducted on tax return in excess of depreciation expense
D = Nondeductible portion of entertainment expense
E = Applicable enacted tax rate for all periods
Tax payable = (A - B - C + D) * E
Tax payable = (250 - 10 - 15 + 10) * 40% = 235 * 40% = 94 million
Deferred tax = (B + C) * E
Deferred tax = (10 + 15) * 40% = 25 * 40% = 10 million
Total tax expense = Tax payable + Deferred tax
= 94 million + 10 million = 104 million
Hope this helps!
