Lopez Company's income statement included income tax expense of $18,000.Income tax payable at the beginning of the current year was $1,000.Income tax payable at the end of the current year was $4,000.Cash paid for taxes was_____.

Question

Quizplus · Accepted Answer

Cash paid for taxes is calculated as: Income tax expense + Beginning income tax payable - Ending income tax payable = $18,000 + $1,000 - $4,000 = $15,000.

Lopez Company's Income Statement Included Income Tax Expense of $18,000