During the year, Beech Corp.reported Income Tax Expense of $49,000.There was a $6,000 decrease in federal income tax payable and a $4,000 increase in provincial income tax payable during the year.What were Beech's cash payments for income tax for the year?

Question

Quizplus · Accepted Answer

The cash payments for income tax can be calculated by adding the increase in federal income tax payable ($6,000) to the increase in provincial income tax payable ($4,000) and subtracting this amount from the total income tax expense of $49,000. 
Cash payments for income tax = $49,000 - ($6,000 + $4,000) = $39,000. Therefore, the correct answer is option B.

During the Year, Beech Corp