The Hurricane Company provided the following information for the year ended December 31, 2018: January 1, 2018 December 31, 2018Interest payable$15,500 $12,250 Discount on bonds payable$79,900 $77,200 Income taxes payable$97,300 $99,900 Deferred income taxes payable$17,400 $11,150 Income tax expense$157,250 Interest expense$57,770 Required:
Determine the cash paid for interest during 2018.Determine the cash paid for income taxes during 2018.
What will be an ideal response?
1.
$58,320 = $57,770 + $3,250 (decrease in interest payable) ? $2,700 (amortization of discount on bonds payable)
2.
$160,900 = $157,250 ? $2,600 (increase in income taxes payable) + $6,250 (decrease in deferred income taxes payable)
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