An Extract from the Trial Balance of RRR Pty Ltd

question 37

Multiple Choice

An extract from the trial balance of RRR Pty Ltd as at 30 June 2015 shows:
Income tax expense $20,000
If the income tax provided for at the end 2014 was $16,000 and taxation is paid in arrears in a lump sum,what amount will appear in the statement of cash flows for taxation paid by RRR Pty Ltd for the year ended 30 June 2015?

• A) $20,000.
• B) $12,000.
• C) $16,000.
• D) Nil.