ABC Quezon Avenue, Inc. is a dealer of trucks and automobiles. ABC distributes annual bonuses to its Vice president for Sales department and three division managers, namely: truck divison, SUV division, and AUV and Sedan Division. The company reported P 12,000,000 profit for year 2019 before bonuses and income tax. Income tax rate is 30%. How much is the total bonus expense that should be recognized for the vice president and each division manager, if the vice president gets 3% and each division manager gets 1%of profit after bonuses before income taxes? A. P 679,246 B. P 169,811 C. P 765,956 D. P 339,623
ABC Quezon Avenue, Inc. is a dealer of trucks and automobiles. ABC distributes annual bonuses to its Vice president for Sales department and three division managers, namely: truck divison, SUV division, and AUV and Sedan Division. The company reported P 12,000,000 profit for year 2019 before bonuses and income tax. Income tax rate is 30%. How much is the total bonus expense that should be recognized for the vice president and each division manager, if the vice president gets 3% and each division manager gets 1%of profit after bonuses before income taxes? A. P 679,246 B. P 169,811 C. P 765,956 D. P 339,623
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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ABC Quezon Avenue, Inc. is a dealer of trucks and automobiles. ABC distributes annual bonuses to its Vice president for Sales department and three division managers, namely: truck divison, SUV division, and AUV and Sedan Division. The company reported P 12,000,000 profit for year 2019 before bonuses and income tax. Income tax rate is 30%.
How much is the total bonus expense that should be recognized for the vice president and each division manager, if the vice president gets 3% and each division manager gets 1%of profit after bonuses before income taxes?
A. P 679,246
B. P 169,811
C. P 765,956
D. P 339,623
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