Use the following information to calculate cash paid for income taxes: Income tax expense $50,000
Income tax payable, January 1 9,000
Income tax payable, December 31 7,000
A) $57,000.
B) $50,000.
C) $59,000.
D) $52,000.
E) $48,000.

Question

Quizplus · Accepted Answer

The formula to calculate cash paid for income taxes is: Income tax expense + Beginning balance of income tax payable – Ending balance of income tax payable = Cash paid for income taxes. Using the information given in the question, we can calculate cash paid for income taxes as: $50,000 + $9,000 - $7,000 = $52,000. Therefore, the correct option is D.

Use the Following Information to Calculate Cash Paid for Income