In its first year of operations, Badonna Corp. reported Income Tax Expense of $52,000 and Income Tax Payable of $10,000. At the end of the year, Badonna reported a noncurrent Deferred Tax Liability of $5,000. What is the amount of cash paid for income taxes during the year?
A) $37,000
B) $47,000
C) $17,000
D) $7,000

Question

Quizplus · Accepted Answer

Income Tax Expense - Income Tax Payable - Deferred Tax Liability = Cash Paid for Income Taxes$52,000 - $10,000 - $5,000 = $37,000

In Its First Year of Operations, Badonna Corp