Income Tax Expense Is $47,000 for the Current Year

question 85

Multiple Choice

Income tax expense is $47,000 for the current year.Income tax payable increased $3000 during the year.Interest payable increased $4000 during the year.What is the cash paid for income taxes?

• A)$44,000
• B)$47,000
• C)$50,000
• D)$51,000

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Definitions:

Manufacturing Overhead

All indirect costs related to the manufacturing process, such as utilities, maintenance, and salaries of supervisory personnel.

Variable Manufacturing Overhead

Costs in manufacturing that vary with the level of production output, such as utilities and certain labor costs; they do not remain constant as production levels fluctuate.

Fixed Manufacturing Overhead

Represents the indirect costs associated with manufacturing that do not vary with the level of production, such as factory rent, salaries of factory supervisors, and depreciation of factory equipment.

Machine-Hours

A unit of measure representing the operating time of machines used in the production of goods.