Under an incentive companesation plan, the general manager of Jelly is entitled to a year-end bonus of 10%. The net income for 2020 of Jelly before anydeduction for bonus and income tax amounted to 2,200,000. The prevailing income tax rate is 30%. How much is the bonus of the general manager if the bonus is based on net income after deducting both bonus and tax?
Under an incentive companesation plan, the general manager of Jelly is entitled to a year-end bonus of 10%. The net income for 2020 of Jelly before anydeduction for bonus and income tax amounted to 2,200,000. The prevailing income tax rate is 30%. How much is the bonus of the general manager if the bonus is based on net income after deducting both bonus and 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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Under an incentive companesation plan, the general manager of Jelly is entitled to a year-end bonus of 10%. The net income for 2020 of Jelly before anydeduction for bonus and income tax amounted to 2,200,000. The prevailing income tax rate is 30%.
How much is the bonus of the general manager if the bonus is based on net income after deducting both bonus and tax?
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