It is to be noted that where the above are given, the amount that Patnode paid t0 the tax authorities in 2015 was $5,400 (Option D)
To find the amount Patnode paid to the tax authorities during 2015, we can use the following formula:
Amount Paid= Tax Expense+ Change in Taxes Payable
Where:
- Tax Expense is the tax provision recorded in the income statement, which is $3,000.
- Change in Taxes Payable is the difference in taxes payable from the beginning to the end of the period, which is the taxes payable at the end of the period minus the taxes payable at the beginning of the period.
In this case:
Change in Taxes Payable= Taxes Payable (End)- Taxes Payable (Beginning)
Change in Taxes Payable= 9,400 - 7,000
Change in Taxes Payable= 2,400
Now, substitute these values into the formula:
Amount Paid= 3,000 + 2,400
Amount Paid= 5,400
Therefore, Patnode paid $5,400 to the tax authorities during 2015. (Option D)
Full Question:
Although part of your question is missing, you might be referring to this full question:
Patnode recorded a 2015 tax expense of $3,000. What amount did it pay to the tax authorities during 2015?
See attached.