Twilight Corp

question 40

Essay

Twilight Corp. began the year with a balance in its Income Taxes Payable account of $13,000. The year-end balance in the account was $18,000. The company uses the indirect method in the Operating Activities section of the statement of cash flows. Therefore, it presents the amount of income taxes paid at the bottom of the statement as a supplemental disclosure. The amount of taxes paid during the year was $15,000.
REQUIRED:
What amount of income tax expense will appear on Twilight's income statement?

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Definitions:

Pathological Traits

Characteristics or behaviors that are indicative of disease or severe psychological conditions.

Hostility

An attitude or behavior that is aggressively antagonistic, unfriendly, or opposing toward people or ideas.

Depression

A mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.

Important Relationships

Bonds or connections between individuals that are considered significant or valuable, often influencing well-being and behavior.