Use the following information to calculate cash paid for income taxes:

Income Tax Expense	$	65,000
Income Tax Payable, January 1		24,000
Income Tax Payable, December 31		14,500

Multiple Choice

• $65,000.

• $89,000.

• $79,500.

• $55,500.

• $74,500.

A manufacturer reports the following costs to produce 24,000 units in its first year of operations: Direct materials, $24 per unit, Direct labor, $20 per unit, Variable overhead, $216,000, and Fixed overhead, $288,000. Of the 24,000 units produced, 23,200 were sold, and 800 remain in inventory at year-end. Under absorption costing, the value of the inventory is:

Multiple Choice

• $35,200.

• $42,400.

• $52,000.

• $44,800.

• $26,400.