Report as current provision for income tax expense


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?

a) $45,000

b) $51,000

c) $60,000

d) $66,000

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Accounting Basics: Report as current provision for income tax expense
Reference No:- TGS048922

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