Question

Klein Corp. reports income tax expense of 157,000. During the current year, the company's income tax payable increased by 3,000. Cash paid for income taxes is?

Answer 1

The cash paid for income taxes by Klein Corp. would be $154,000, calculated by subtracting the increase in income tax payable from the income tax expense.

Step-by-step explanation:

The question you've asked pertains to the calculation of cash paid for income taxes by Klein Corp. If Klein Corp. reports an income tax expense of $157,000 and its income tax payable increased by $3,000 during the current year, we need to adjust the reported income tax expense to find out the actual cash paid for income taxes. To calculate the cash paid, we subtract the increase in income tax payable from the income tax expense. Hence, the cash paid for income taxes would be $157,000 - $3,000, which equals $154,000.