Question

Beane Corporation shows income tax expense of $82,000. There has been a $6,000 decrease in federal income taxes payable and a $7,000 increase in state income taxes payable during the year. What was Beane's cash payment for income taxes

Answer 1

Answer:

Beane's cash payment for income tax = $81,000

Explanation:

Income tax expense = $82,000

Decrease in federal income tax payable = $6,000

Increase in state income tax payable = $7,000

Beane's cash payment for income tax = (Income tax expense) - (increase in state income taxes payable) + ( Decrease in federal income taxes payable)

Beane's cash payment for income tax = 82000 - 7000 + 6000

Beane's cash payment for income tax = $81,000