Assume Tax Is Paid Annually in a Lump Sum

Multiple Choice

Assume tax is paid annually in a lump sum. The beginning balance in the current tax liability account is $70 000 and the ending balance is $79 000. There was no under or over provision of tax for the year. What is the amount of tax paid to be included in the statement of cash flows for the period?

A) Nil
B) $70 000
C) $80 000
D) $79 000