Hackett,Inc had property tax payable of $75,000 and $110,000 at the end of 2016 and 2017 respectively.During 2017,Hackett recorded $750,000 in property tax expense on its income statement.Cash outflows for property tax during 2017 were ________.

Question

Quizplus · Accepted Answer

The cash outflows for property tax during 2017 can be calculated by adjusting the property tax expense with the change in property tax payable: $750,000 (expense) - ($110,000 - $75,000) (increase in payable) = $715,000.

Hackett,Inc Had Property Tax Payable of $75,000 and $110,000 at the End