Question

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

Answer

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