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Cash Payments for Income Taxes—Indirect Method
Conifer Inc. began the year with a balance in its Income Taxes Payable account of $8,500. The year-end balance in the account was $15,000. The company uses the indirect method in the Operating Activities section of the statement of cash flows. Therefore, it presents the amount of income taxes paid at the bottom of the statement as a supplemental disclosure. The amount of taxes paid during the year was $12,000.
What amount of income tax expense will appear on Conifer's income statement?
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