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Patnode recorded a 2015 tax expense of $3,000. What amount did it pay to the tax authorities during 2015

User Wabregoc
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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:

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Patnode recorded a 2015 tax expense of $3,000. What amount did it pay to the tax authorities during 2015?

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Patnode recorded a 2015 tax expense of $3,000. What amount did it pay to the tax authorities-example-1
User Simon Parker
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