For the year ended December 31, year 1, 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)
Grim’s enacted income tax rate is 30%. In its year 1 income
statement, what amount should Grim report as current provision
for income tax expense?