Use the following information to calculate cash paid for income taxes: Income tax expense $50,000
$$\begin{array} {| l | r | }
\hline \text { Income tax payable, January 1 } & 9,000 \
\hline \text { Income tax payable, December 31 } & 7,000\
\hline
\end{array}$$
A) $50,000.
B) $59,000.
C) $57,000.
D) $48,000.
E) $52,000.

Question

Use the following information to calculate cash paid for income taxes: Income tax expense $50,000
$$\begin{array} {| l | r | } 
\hline \text { Income tax payable, January 1 } & 9,000 \
\hline \text { Income tax payable, December 31 } & 7,000\
\hline 
\end{array}$$
A) $50,000.
B) $59,000.
C) $57,000.
D) $48,000.
E) $52,000.

Quizplus · Accepted Answer

The cash paid for income taxes is calculated as: Income tax expense + Beginning income tax payable - Ending income tax payable = $50,000 + $9,000 - $7,000 = $52,000.

Use the Following Information to Calculate Cash Paid for Income