KRJ Corporation reported (in $ millions) tax expense of $950 for the year. Taxes payable at...

KRJ Corporation reported (in $ millions) tax expense of $950 for the year. Taxes payable at the beginning of the year was $150 and at the end of the year it was $153. Deferred taxes at the beginning of the year was $114 and at the end of the year it was $123. The company also reported deferred tax assets at the beginning of the year of $87 and at the end of the year it was $74. How much cash (in $ millions) was paid for taxes for during the year?

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Calculation of Net deferred tax

Particulars	Deferred Tax Assets	Deferred Tax Liabilities	Net DTL
Opening Balance	$87	$114	$27
Closing Balance	$74	$123	$49

Increase in deferred tax liability = $22

Calculation of taxes paid in cash

Opening tax payable	$150
Add : Expense during the year	-$950
Closing tax payable	$153
Balance	$947
Less : Increase in Deferred tax liability	-$22
Taxes Paid during the year	$925

jeff jeffy answered 2 years ago

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