Interest and Income Taxes – The Staggs Company has prepared its 2007 statement of cash flows. In conjunction with this statement, it plans to disclose the interest and income taxes it paid during 2007. The following information is available from its 2007 income statement and beginning and ending balance sheet:
|
Income Statement |
||
|
Interest expense |
$12,000 |
|
|
Income tax expense |
35,000 |
|
|
Balance Sheet |
||
|
Cr. Bal. 01/01/07 |
Cr. Bal. 12/31/07 |
|
|
Interest payable |
$600 |
$2,300 |
|
Income taxes payable |
5,000 |
3,000 |
|
Bonds payable |
80,000 |
80,000 |
|
Premium on bonds payable |
9,000 |
8,100 |
|
Deferred taxes payable |
3,300 |
4,400 |
Required
Compute the amounts of interest paid and income taxes paid by the Staggs Company for 2007.