The following information relates to Interstate Trucking for its first 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 or non temporary differences.

Interstate's taxable income ($ in millions) is:

1)  $40.
2)  $(25)
3)  $110.
4)  $115.