Westwind Corporation shows income tax expense of $270,000.There has been a $30,000 decrease in federal income taxes payable and a $42,000 increase in state income taxes payable during the year.Using the direct method of reporting cash flows from operating activities, what was Westwind 's cash payment for income taxes?

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Quizplus · Accepted Answer

Cash payment for income taxes = Income tax expense + Decrease in federal income taxes payable - Increase in state income taxes payable= $270,000 + $30,000 - $42,000= $258,000

Westwind Corporation Shows Income Tax Expense of $270,000