Question: For the year ended December 31, 2010, Grim Co.s pretax financial statement income was $200,000 and its taxable income was $150,000. The difference is due

For the year ended December 31, 2010, Grim Co.’s pretax financial statement income was $200,000 and its taxable income was $150,000. The difference is due to the following:

Interest on municipal bonds $70,000 Premium expense on keyman life insurance (20,000)

Total $50,000 Grim’s enacted income tax rate is 30%. In its 2010 income statement, what amount should Grim report as current provision for income tax expense?

a. $45,000

b. $51,000

c. $60,000

d. $66,000

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