ABC Company has an agreement to pay its sales manager a bonus of 5% of the income after bonus and after tax. The income for the current year before bonus and tax is P5,250,000. The income tax rate is 30% of income after bonus. What amount should be reported as bonus of the sales manager for the current year?
ABC Company has an agreement to pay its sales manager a bonus of 5% of the income after bonus and after tax. The income for the current year before bonus and tax is P5,250,000. The income tax rate is 30% of income after bonus. What amount should be reported as bonus of the sales manager for the current year?
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 15E
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ABC Company has an agreement to pay its sales manager a bonus of 5% of the income after bonus and after tax. The income for the current year before bonus and tax is P5,250,000. The income tax rate is 30% of income after bonus. What amount should be reported as bonus of the sales manager for the current year?
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