The Kelso Company had the following operating results: What is the income tax refund receivable?

Question

Quizplus · Accepted Answer

To calculate the income tax refund receivable, we need to subtract the income tax expense from the income tax payable. 
Income tax expense = $65,000 x 30% = $19,500 
Income tax payable = ($65,000 - $20,000 - $15,000) x 30% = $10,500 
Income tax refund receivable = Income tax payable - Income tax expense = $10,500 - $19,500 = $-9,000, which means they overpaid their taxes and are due a refund of $9,000. However, this is not listed as an option. The closest option is B, which is $19,500, the income tax expense for the period.

The Kelso Company Had the Following Operating Results: What Is