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The Hurricane Company Provided the Following Information for the Year

Question 102

Essay

The Hurricane Company provided the following information for the year ended December 31,2015:
 January 1,2015 December 31,2015  Interest payable $15,500$12,250 Discount on bonds payable $79,900$77,200 Income taxes payable $97,300$99,900 Deferred income taxes payable $17,400$11,150 Income tax expense $157,250 Interest expense $57,770\begin{array} { l c c } & \text { January } 1,2015 & \text { December 31,2015 } \\\hline \text { Interest payable } & \$ 15,500 & \$ 12,250 \\\text { Discount on bonds payable } & \$ 79,900 & \$ 77,200 \\\text { Income taxes payable } & \$ 97,300 & \$ 99,900 \\\text { Deferred income taxes payable } & \$ 17,400 & \$ 11,150 \\& & \\\text { Income tax expense } & \$ 157,250 & \\\text { Interest expense } & \$ 57,770 &\end{array}
Required:
1.Determine the cash paid for interest during 2015.
2.Determine the cash paid for income taxes during 2015.

Correct Answer:

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1.$58,320 = $57,770 + $3,250 (decrease i...

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