Baldwin Company's income statement reported income tax expense of $18,000.Income tax payable at the beginning of the year was $5,000.Income tax payable at the end of the year was $4,000.The cash paid for taxes was ________.

Question

Quizplus · Accepted Answer

The cash paid for taxes is calculated as: Beginning Income Tax Payable + Income Tax Expense - Ending Income Tax Payable = $5,000 + $18,000 - $4,000 = $19,000.

Baldwin Company's Income Statement Reported Income Tax Expense of $18,000