Baekhyun Company distributes annual bonuses to its sales manager and two sales supervisors. The company reported P2,000,000 profit for 2021 before bonuses and income tax. Income tax rate is P30%. The bonus is 15% of profit after bonuses but before income tax.

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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Baekhyun Company distributes annual bonuses to its sales manager and two sales supervisors. The company reported P2,000,000 profit for 2021 before bonuses and income tax. Income tax rate is P30%. The bonus is 15% of profit after bonuses but before income tax.

How much is the total amount of bonus?

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