Question

Blue Spruce Corp. reported income tax expense of $356,459,000 on its 2020 income statement and income taxes payable of $280,361,000 at December 31, 2019, and $517,665,000 at December 31, 2020. What amount of cash payments were made for income taxes during 2020?

Answer 1

$119,155,000

Step-by-step explanation:

The computation of the cash payments were made for income taxes during 2020 is shown below:

= Income tax expense + income tax payable at December 31, 2019 - income tax payable at December 31, 2020

= $356,459,000 + $280,361,000 - $517,665,000

= $119,155,000

We added the previous year income tax payable and added the current year income tax payable to the income tax expense so that the accurate amount can come.