Dobson Corporation shows income tax expense of $80,000.There has been a $5,000 decrease in federal income taxes payable and a $7,000 increase in local income taxes payable during the year.What was Dobson's cash payment for income taxes?

Question

Quizplus · Accepted Answer

Cash payment for income taxes = Income tax expense + Decrease in federal income taxes payable - Increase in local income taxes payable= $80,000 + $5,000 - $7,000= $78,000

Dobson Corporation Shows Income Tax Expense of $80,000