The income tax payable account showed an opening balance of $62 000 and a closing balance of $75 000.Income tax expense was $68 000.What was the income tax paid?
A) $55 000
B) $68 000
C) $81 000
D) $62 000

Question

Quizplus · Accepted Answer

The increase in the income tax payable account from $62,000 to $75,000 indicates that $13,000 was added to the balance during the period. 
Since the income tax expense was $68,000, we can subtract the increase in the income tax payable account to find the income tax paid: 
$68,000 - $13,000 = $55,000. 
Therefore, the income tax paid was $55,000.

The Income Tax Payable Account Showed an Opening Balance of $62