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?

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?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 9MC: A company has pre-tax or operating income of $120,000. If the tax rate is 40%, what is the companys...

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Question

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?

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