During 2015,ABC Corporation's Income Tax Expense totaled $20,000 and Income Tax Payable increased by $3,000; therefore,the cash paid for income taxes was $17,000.

Question

Quizplus · Accepted Answer

The cash paid for income taxes is calculated by adjusting the income tax expense by the change in income tax payable. If the payable increased by $3,000, it means $3,000 less was paid in cash, so $20,000 - $3,000 = $17,000 was paid in cash.

During 2015,ABC Corporation's Income Tax Expense Totaled $20,000 and Income