Question 4. 4. (TCO B) For the year ended December 31, 1993, 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 1993 income statement, what amount should Grim report as current provision for income tax expense? (Points : 5)

$45,000 $51,000 $60,000 $66,000

Question 5. 5. (TCO B) When accounting for income taxes, a temporary difference occurs in which of the following scenarios? (Points : 5)

An item is included in the calculation of net income, but is neither taxable nor deductible. An item is included in the calculation of net income in one year and in taxable income in a different year. An item is no longer taxable due to a change in the tax law. The accrual method of accounting is used.