Information for Hobson Corp

Multiple Choice

Information for Hobson Corp. for the current year ($ in millions) : The applicable enacted tax rate for all periods is 40%.
-How should Hobson report tax on the discontinued operation?

A) A tax receivable of $12 million in the balance sheet.
B) A tax benefit of $12 million to net against the $30 million pretax loss.
C) A deferred tax asset of $12 million in the balance sheet.
D) None of these answer choices are correct.