Sardi Company estimates its 2015 tax expense to be $80,000. It makes a cash payment of $20,000 to the tax authorities on December 31, 2015. How should this transaction be recorded by Sardi?

Debit tax expense $80,000; credit cash $60,000; credit taxes payable $20,000

Debit tax expense $80,000; credit cash $20,000; credit taxes payable $60,000

Debit tax expense $80,000; credit cash $20,000

Debit tax expense $80,000; credit cash $20,000; credit accounts payable $60,000

Answer rating: 100% (QA)

Solution Company estimated 2015 tax expense 80000 cash payment to the tax author... View the full answer