Staycee Co. decided to pay its sales manager a bonus of 7.5% of the company's earnings because of a very good performance. The income for the year before bonus and tax is ₱6,890,500. Income tax rate is 32% of income after bonus. The bonus is computed after deduction for both bonus and tax. Compute for the amount of bonus for the year.
Staycee Co. decided to pay its sales manager a bonus of 7.5% of the company's earnings because of a very good performance. The income for the year before bonus and tax is ₱6,890,500. Income tax rate is 32% of income after bonus. The bonus is computed after deduction for both bonus and tax. Compute for the amount of bonus for the year.
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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Staycee Co. decided to pay its sales manager a bonus of 7.5% of the company's earnings because of a very good performance. The income for the year before bonus and tax is ₱6,890,500. Income tax rate is 32% of income after bonus. The bonus is computed after deduction for both bonus and tax. Compute for the amount of bonus for the year.
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