Question
For the year ended December 31, Year 3, Grim Co.'s pretax financial statement income was $ 200,000 and its taxable income was $150,000. The difference
For the year ended December 31, Year 3, 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 Year 3 income statement, what amount should Grim report as the current provision for income tax expense?
a. 45,000
b. 51,000
c. 60,000
d. 66,000
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Accounting Principles
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
11th Edition
111856667X, 978-1118566671
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