Wireless Technologies reports income tax expense of $800,000.Income tax payable at the beginning and end of the year are $50,000 and $70,000,respectively.What is the amount of cash paid for income taxes?

Question

Quizplus · Accepted Answer

The cash paid for income taxes is calculated as the income tax expense minus the increase in income tax payable. The increase in income tax payable is $70,000 - $50,000 = $20,000. Therefore, cash paid = $800,000 - $20,000 = $780,000.

Wireless Technologies Reports Income Tax Expense of $800,000