During the Current Year,a Company Paid $4,500 Which It Owed

question 166

Multiple Choice

During the current year,a company paid $4,500 which it owed from its prior year income tax liability and $30,000 for its current year tax liability.The company still owes $6,000 at the end of the current year.How much should the company report as cash paid for income taxes on its statement of cash flows for the current year?

• A) $34,500
• B) $40,500
• C) $30,000
• D) $3,500