Question
In 2021, Cupcake Corporation reported a $6000 income tax expense on its income statement (GAAP). The company also recorded an increase in its deferred tax
In 2021, Cupcake Corporation reported a $6000 income tax expense on its income statement (GAAP). The company also recorded an increase in its deferred tax liability of $1300. This liability was caused by a difference between accelerated depreciation (permitted for income tax purposes) and straight-line depreciation (used for financial statement purposes). Assume that all taxes due were paid during the year, and the company has no deferred tax assets.
Based on this information, what was the actual amount of taxes due/paid by the company in their 2021 (tax return)?
Group of answer choices
$1300
$4700
$6000
$7300
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