Reference no: EM13482226

The following information relates to Interstate Trucking for itsfirst year of operations (data in millions ofdollars):

Pretax accounting income: $150
Pretax accounting income included:
Overweight fines (not deductible for tax purposes) 5
Depreciation expense 70
Depreciation on the tax return using MACRS: 110

The applicable tax rate is 40%. There are no other temporary ornontemporary differences.

Inter state's taxable income ($ in millions) is:

1) $40.

2) $25

3) $110.

4) $115.