Use the Information for the Question(s)below

Multiple Choice

Use the information for the question(s) below.
Ford Motor Company is considering launching a new line of hybrid diesel-electric 4WDs. The heavy advertising expenses associated with the new 4WD launch would generate operating losses of $40 million next year. Without the new 4WD, Ford expects to earn pre-tax income of $75 million from operations next year. Ford pays a 25% tax rate on its pre-tax income.
-The amount that Ford Motor Company owes in taxes next year without the launch of the new 4WD is closest to:

A) $13.55 million
B) $18.75 million
C) $8.75 million
D) $16.75 million