Income Tax Expense Was $200 000 for the Year

question 12

Multiple Choice

Income tax expense was $200 000 for the year. Income tax payable was $20 000 at the beginning and $30 000 at the end of the year. Cash payment for income tax reported on the cash flow statement using the direct method is:

• A) $190 000.
• B) $200 000.
• C) $220 000.
• D) None of the above.

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Definitions:

Marginal Subcontracting Cost

The additional cost incurred for each additional unit of production that is subcontracted rather than produced in-house.

Layoff Cost

The expenses associated with reducing an organization's workforce, encompassing severance pay, benefits continuation, and potential legal costs.

Hiring And Training Cost

Expenses associated with recruiting new employees and providing them with the necessary skills and knowledge for their role.

Labor Hours

The total number of hours worked by employees, used as a measure of labor input in the production of goods and services.