Income tax expense was $137,500 for the year.The balance of the iIncome tax payable account was $7,500 at the beginning of the year and $10,000 at the end of the year.Cash payments for income tax reported on the cash flow statement using the direct method is:equals:

Question

Quizplus · Accepted Answer

Beginning balance of Income Tax Payable + Income tax expense - Cash outflows for income tax payments = Ending balance of Income Tax Payable
$7,500 + $137,500 - Cash outflows for income tax payments = $10,000
Cash outflows for income taxes = $7,500 + $137,500 - $10,000 = $135,000

Income Tax Expense Was $137,500 for the Year