Use the following information to calculate cash paid for income taxes:
$$\begin{array} { | l | r | }
\hline \text { Income tax expense } & \$ 43,000\
\hline \text { Income tax payable, January 1 } & 9,100 \
\hline \text { Income tax payable, December } 31 & 10,200 \
\hline
\end{array}$$
A) $23,700.
B) $52,100.
C) $53,200.
D) $41,900.
E) $43,000.

Question

Use the following information to calculate cash paid for income taxes:
$$\begin{array} { | l | r | } 
\hline \text { Income tax expense } & \$ 43,000\
\hline \text { Income tax payable, January 1 } & 9,100 \
\hline \text { Income tax payable, December } 31 & 10,200 \
\hline
\end{array}$$
A) $23,700.
B) $52,100.
C) $53,200.
D) $41,900.
E) $43,000.

Quizplus · Accepted Answer

To calculate cash paid for income taxes, start with the income tax expense of $43,000, then adjust for the change in income tax payable. The income tax payable increased from $9,100 to $10,200, an increase of $1,100. Subtract this increase from the income tax expense to find the cash paid: $43,000 - $1,100 = $41,900.

Use the Following Information to Calculate Cash Paid for Income