Hua Company has an agreement to pay its sales manager a bonus of 5% of income after bonus and after tax. The income for the year before bonus and tax is P5,250,000. The income tax rate is 30% of income after bonus. Suppose the bonus has not yet been paid, what amount of current liability for bonus should be reported at year end?
Hua Company has an agreement to pay its sales manager a bonus of 5% of income after bonus and after tax. The income for the year before bonus and tax is P5,250,000. The income tax rate is 30% of income after bonus. Suppose the bonus has not yet been paid, what amount of current liability for bonus should be reported at year end?
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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