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:

Logical

Pertaining to the use of reason and clear thinking, often involving the systematic process of inference or deduction.

Stealing

The act of taking someone else's property without permission or legal right and with no intention to return it.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing behaviors, thoughts, and emotions.

Reciprocal Determinism

A concept in psychology that suggests individual behavior, environment, and cognition are interrelated and influence each other.