In 2014,a Company Paid $4,500 Which It Owed from Its

Multiple Choice

In 2014,a company paid $4,500 which it owed from its 2013 income tax liability and $30,000 for its 2014 tax liability.The company still owes $6,000 at year-end.How much should the company report as cash paid for income taxes on its 2014 statement of cash flows,using the direct method?

A) $34,500
B) $40,500
C) $30,000
D) $3,500