Entity A has an incentive compensation plan under which the sales manager receives a bonus equal to 10 percent of the company's income after deductions for bonus and income taxes. Income before bonus and income taxes is P500,000. The effective income tax rate is 30 percent. How much is the amount of bonus (rounded to the nearest peso)? a. 32,710 b. 60,748 c. 30,974 d. 37,210 How much is the amount of income tax? a. 131,776 b. 140,708 c. 138,837 d. 140,187
Entity A has an incentive compensation plan under which the sales manager receives a bonus equal to 10 percent of the company's income after deductions for bonus and income taxes. Income before bonus and income taxes is P500,000. The effective income tax rate is 30 percent. How much is the amount of bonus (rounded to the nearest peso)? a. 32,710 b. 60,748 c. 30,974 d. 37,210 How much is the amount of income tax? a. 131,776 b. 140,708 c. 138,837 d. 140,187
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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Entity A has an incentive compensation plan under which the sales manager receives a bonus equal to 10
percent of the company's income after deductions for bonus and income taxes. Income before bonus and income
taxes is P500,000. The effective income tax rate is 30 percent.
- How much is the amount of bonus (rounded to the nearest peso)?
a. 32,710 b. 60,748 c. 30,974 d. 37,210 - How much is the amount of income tax?
a. 131,776 b. 140,708 c. 138,837 d. 140,187
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