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Hoffman Corporation reported income taxes of $370,000,000 on its 2017 income statement and income taxes payable...

Hoffman Corporation reported income taxes of $370,000,000 on its 2017 income statement and income taxes payable of $277,000,000 at December 31, 2016, and $528,000,000 at December 31, 2017. What amount of cash payments were made for income taxes during 2017?

Compute cash payments for operating expenses—direct method.

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Answer #1
Income Tax Payable A/C
Date Particulars Amount $ Date Particulars Amount $
01-01-17 Opening balance $        277,000,000
Year 2017 Cash Paid for income tax $          119,000,000 Year 2017 Income tax expense $        370,000,000
31-12-17 Closing balance $          528,000,000
$          647,000,000 $        647,000,000
Cash Paid for income tax =($277,000,000+$370,000,000-$528,000,000)=$119,000,000
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