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Grace123Mercy
Jan 18, 2013, 06:37 PM
Patnode recorded a 2005 tax expense of $3,000. What amount did it pay to the tax authorities during 2005? Taxes payable is $9400.

A $2,400
B $7,000
C $600
D $5,400

I am really confused here, I think the answer might be a or d. I don't know how to actually calculate this. Is there a formula to use. Please help.

Fidget1
Jan 19, 2013, 05:04 AM
Have you made a mistake when typing in your question or have you missed something out?

In general, to find the cash paid:

Take opening bal, add expense for the year, deduct closing balance. The difference is the cash paid.