what amount should Severn have shown for its Income Tax Expense adjusted to a cash basis (i.e.,...

Severn Corporation prepares its statement of cash flows using the direct method. Last year, Severn reported Income Tax Expense of $27,000. At the beginning of last year, Severn had a $2,000 balance in the Taxes Payable account. At the end of last year, Severn had a $5,000 balance in the account. On its statement of cash flows for last year, what amount should Severn have shown for its Income Tax Expense adjusted to a cash basis (i.e., income taxes paid)?

A) $20,000

B) $22,000

C) $24,000

D) $30,000