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:

Earth's Sediments

Particles of organic or inorganic material that have been transported and deposited by wind, water, or ice, forming layers on the Earth's surface.

Biological Components

Essential elements, structures, or molecules that are part of or necessary for the living organisms' life cycles and processes.

Phosphorus

A chemical element, essential for life, involved in many cellular processes, including energy transfer and the structure of DNA and RNA.

Inhalation

The act of drawing air or other substances into the lungs.