Use the following information to calculate cash paid for income taxes: $$\begin{array} { |l | r| }
\hline \text { Income tax expense } & \$ 43,000 \
\hline \text { Income tax payable, January 1 } & 9,100 \
\hline \text { Income tax payable, December } 31 & 10,200\
\hline
\end{array}$$
A) $23,700.
B) $52,100.
C) $53,200.
D) $41,900.
E) $43,000.

Question

Use the following information to calculate cash paid for income taxes: $$\begin{array} { |l | r| } 
\hline \text { Income tax expense } & \$ 43,000 \
\hline \text { Income tax payable, January 1 } & 9,100 \
\hline \text { Income tax payable, December } 31 & 10,200\
\hline 
\end{array}$$
A) $23,700.
B) $52,100.
C) $53,200.
D) $41,900.
E) $43,000.

Quizplus · Accepted Answer

- Cash paid for income taxes = Income tax expense - increase in income tax payable
- Increase in income tax payable = income tax payable (end of the year) - income tax payable (start of the year)
- Increase in income tax payable = $10,200 - $9,100 = $1,100
- Cash paid for income taxes = $43,000 - $1,100 = $41,900 
Therefore, the answer is D) $41,900.

Use the Following Information to Calculate Cash Paid for Income