After three profitable years, Cairo Company decided to offer a bonus to the branch manager of 25% of income over P1,000,000 earned by the branch. The income for the branch was p1,600,000 before tax and before bonus for the current year. The bonus is computed on income in excess of P1,000,000 after deducting the bonus but before deducting tax What is the bonus of the branch manager for the current year? 120,000. 150,000 250,000 320 000

After three profitable years, Cairo Company decided to offer a bonus to the branch manager of 25% of income over P1,000,000 earned by the branch. The income for the branch was p1,600,000 before tax and before bonus for the current year. The bonus is computed on income in excess of P1,000,000 after deducting the bonus but before deducting tax What is the bonus of the branch manager for the current year? 120,000. 150,000 250,000 320 000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 8RE: Borat Company gives annual bonuses after the end of the year. Borat computes the bonuses based on...

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Similar questions

Borat Company gives annual bonuses after the end of the year. Borat computes the bonuses based on the companys net income after deducting the bonuses but before deducting income taxes. Borats income before bonuses and income taxes is 565,000 for the current year. The effective income tax rate is 21%, and the bonus rate is 12%. Calculate Borats bonuses and income taxes for the current year. Round your final answer to two decimal places.
A company has pre-tax or operating income of $120,000. If the tax rate is 40%, what is the companys after-tax income? A. $300,000 B. $240,000 C. $48,000 D. $72,000
Suppose that Blake Companys total pretax difference from a change to FIFO was 100,000 and the company pays a bonus of 5% of its income before income taxes and bonus to employees. If Blake pays an additional bonus | based on the change in income, would it recognize any expense? If so, when and how much?
Wed Company has an incentive compensation plan under which a branch manager received 10% of the branch’s incomeafter deduction of the bonus but before tax. Branch income for the year before the bonus and income tax was P2,475,000.Tax rate is 35%. What is the amount of bonus for the current year?a. P189,000 c. P247,500b. P270,000 d. P225,000
PP Company has an incentive compensation plan under which a branch manager receives 10% of the branch income after deduction of the bonus but before deduction of income tax. Branch income for the current year before the bonus and income tax was P1,650,000. The tax rate was 30%. What is the bonus for the current year?
Yel Co. has a bonus agreement which provides that the general manger shall receive an annual bonus of 10% of the net income after bonus and tax. The income tax rate is 30%. The general manager received P 280,000 for the current year as bonus. What is the income before bonus and tax? * A.4,280,000 B.3,720,000 C.4,000,000 D.2,800,000
Entity A has an incentive compensation plan under which the sales manager receives a bonus equal to 10percent of the company's income after deductions for bonus and income taxes. Income before bonus and incometaxes is P500,000. The effective income tax rate is 30 percent. How much is the amount of bonus (rounded to the nearest peso)?a. 32,710 b. 60,748 c. 30,974 d. 37,210 How much is the amount of income tax?a. 131,776 b. 140,708 c. 138,837 d. 140,187
37. The bonus agreement of Christian Company provides that the general manager shall receive an annual bonus of 10% of the net income after bonus and tax. The income tax rate is 30% The general manager received P350,000 for the current year as bonus. What is the income before bonus and tax? P4,280,000 P4,000,000 P3,700,000 P5,350,000
Love Company has an incentive compensation plan under which a branch manager received 10% of the branch’s income afterdeduction of the bonus and tax. Branch income for the year before the bonus and income tax was P3,300,000. Tax rate is 30%.What is the amount of bonus for the current year?
35. a) Ronald Company has an incentive compensation plan under which a branch manager received 10% of the branch income after deduction of the bonus but before deduction of income tax. Branch income for the current year before the bonus and income tax was P1,650,000. The tax rate is 30%. What is the bonus for the current year? P150,000 P180,000 P165,000 P126,000
7. SESAME-SEED Company has a bonus agreement which provides that the senior managers will receive an annual bonus of 12% of the net income after bonus and tax. The income tax rate is 30%. The senior managers received ₱250,000 for the current year as bonus. What is the net income before bonus and tax?
A. Ferrero Company has an agreement to pay its sales manager a bonus of 10% of the income after bonus and tax.The income for the year before bonus and tax is P5,250,000. The income tax rate is 20% of income after bonus. 1. What is the bonus for the year?