Sneed Corporation reported balances in the following accounts for the current year: Income taxes payable $ 50 $ 30 Deferred tax liability 80 140 Income tax expense was $230 for the year. What was the amount paid for taxes? $220. $280. $190. $210.

Sneed Corporation reported balances in the following accounts for the current year: Income taxes payable $ 50 $ 30 Deferred tax liability 80 140 Income tax expense was $230 for the year. What was the amount paid for taxes? $220. $280. $190. $210.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 2EA: Consider the following accounts and determine if the account is a current liability, a noncurrent...

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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

Sneed Corporation reported balances in the following accounts for the current year:

Income taxes payable	$	50		$	30
Deferred tax liability		80			140

Income tax expense was $230 for the year. What was the amount paid for taxes?

		$220.
		$280.
		$190.
		$210.

Definition Definition Estimated future tax made while preparing accounts. Deferred tax is estimated based on past and present transactions from financial statements. It is not the actual tax that needs to be paid or is refundable from the revenue authority; it is an accounting entry. It is necessary to account for deferred tax due to difference between accounting profits and taxable profits.

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