The profit for 2019 of Dwight Company before any doduction for bonus and income tax amounted to P2,500,000. Underan incentive compensation plan, the general manager is entitled to year-end bonus of 10% of the profit belore decuctingthe bonus but after deducting the income tax. Income tax rate is 30%. The manager's bonus for 2019 wasA. 169,903B. 180,412C. 227,273D. 163,551

Profit after Tax = Profit before deducting Bonus and Tax - Bonus - Tax

The profit for 2019 of Dwight Company before any deduction for bonus and income tax amounted to P2,500,000. Under an incentive compensation plan, the general manager is entitlod to year-end bonus of 10% of the profit before deducting the bonus but after deducting the income tax. Income tax rate is 30%. The manager's bonus for 2019 was A. 169,903 B. 180,412 C. 227,273 D. 163,551

The profit for 2019 of Dwight Company before any deduction for bonus and income tax amounted to P2,500,000. Under an incentive compensation plan, the general manager is entitlod to year-end bonus of 10% of the profit before deducting the bonus but after deducting the income tax. Income tax rate is 30%. The manager's bonus for 2019 was A. 169,903 B. 180,412 C. 227,273 D. 163,551

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

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 6RE: Suppose that Blake Companys total pretax difference from a change to FIFO was 100,000 and the...

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