Century Company has a bonus agreement which provides that the general manager shall receive an annual bonus of 5% of the profit after bonus and tax. The income tax rate is 30%. The general manger received P120,000 for the current year as bonus. What is the income before tax?

Century Company has a bonus agreement which provides that the general manager shall receive an annual bonus of 5% of the profit after bonus and tax. The income tax rate is 30%. The general manger received P120,000 for the current year as bonus. What is the income before 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 15E

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