The accrual-basis tax expense in the income statement is $90 000, the beginning balance in the current tax liability account is $130 000 and the ending balance is $150 000. What is the amount of tax paid to be included in the statement of cash flows for the year?

Question

Quizplus · Accepted Answer

The tax paid can be calculated by adjusting the accrual-basis tax expense for the change in the current tax liability account. The calculation is $90,000 + ($130,000 - $150,000) = $70,000.

The Accrual-Basis Tax Expense in the Income Statement Is $90