V Co. has an agreement to pay its sales manager a bonus of 7.5% of the company's earnings due to an exemplary performance. The income for the year before bonus and tax is ₱6,890,500. Income tax rate is 32% of income after bonu. The bonus is computed after deduction for both bonus and tax. Compute for the income after tax for the year.

Q: Hua Company has an agreement to pay its sales manager a bonus of 5% of income after bonus and after…

A: Tax means the mandatory payment made to government for the income earned. Bonus means the amount…

Q: Libra Corporation’s president has a profit-sharing agreement with the company. The agreement states…

A: Bonus Payable = 10% x Net Income before deduction of bonus but after tax

Q: Grace has the following transactions. Gross sales-840,000 php Sales discounts- 25,000 php Cost of…

A: Taxable Income: Taxable income is the amount of money earned that is subject to taxation. Amounts…

Q: Calculate income tax payable or repayable for the tax year 2020/21.

A: Income tax payable is the tax payable which is the taxpayer has to pay on the income earned during…

Q: year before bonus and tax is P5,250,000. The income tax rate a bonus of 5% of the entity's earnings.…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Use the information for the next four (4) questions. QWERTY Company has an agreement to pay the…

A: Income after tax before bonus = Income before bonus and before tax x (1-0.30) =  P7,875,000 x 0.70 =…

Q: Yel Co. has a bonus agreement which provides that the general manger shall receive an annual bonus…

A: Solution..     Manager bonus = P280,000  Manager bonus = 10% of income after bonus and tax

Q: Vega Company expects to pay a 4% bonus on net income after deducting the bonus. Assume the company…

A: Bonus: Bonus is one of the components of an employee’s salary. It can be defined as a reward paid by…

Q: KL Corporation’s president has a profit-sharing agreement with the company. The agreement states…

A: Base Bonus = (Net Income - Tax) X 10% Base Bonus = [Net Income - [(Net Income - Bonus)] X Tax rate )…

Q: The sales manager of the Walbrook Company receives an annual bonus of 10% of net income after bonus…

A: Bonus refers to monetary incentives that are given by employers to employees to motivate them to…

Q: Nature Company has an agreement to pay each sales manager a bonus of 5% of the entity's earnings and…

A: Calculation of Total Bonus of both Sales Personnel Number of Sales Manager = 2 Number of Sales…

Q: V Co. has an agreement to pay its sales manager a bonus of 7.5% of the company's earnings due to an…

A: SOLUTION-   BONUS- IT IS A FINANCIAL COMPENSATION THAT IS ABOVE AND BEYOND THE NORMAL PAYMENT…

Q: Joy, a purely self-employed individual, signified his intention to be taxed at the 8% tax rate. He…

A: Tax payable: It implies to the tax liability that is still left to be settled in cash. It includes…

Q: How much is the amount of bonus under the second plan? How much is the amount of bonus under the…

A: Suppose B is the amount of Bonus Under Second Plan, B = {(Profits before bonus and tax - B) x (1 -…

Q: Natural Company has an agreement to pay the sales manager a bonus of 10% of the entity's earnings.…

A: The bonus can be paid to manager on different conditions as before bonus or after bonus.

Q: A. Ferrero Company has an agreement to pay its sales manager a bonus of 10% of the income after…

A: Let assume the income after bonus and tax = X Then the manager bonus will be = X * 0.10 = 0.1X The…

Q: JIMIN Company has an agreement to pay the executive officers a bonus of 5% of the entity’s earnings.…

A: Bonus is the additional amount given to owners or partners in the business for their outstanding…

Q: ble Company provides an incentive compensation plan under which its president received a bonus qual…

A: The net income before tax can be computed from net income after tax using rate of income tax.

Q: Berry Co/ provides an incentive compensation plan under which its president receives a bonus equal…

A: The bonus amount is 20% of after tax and bonus amount. The following formula would be applied to get…

Q: V Co. has an agreement to pay its sales manager a bonus of 7.5% of the company's earnings due to an…

A: Calculation of Profit before tax : Net Income = ₱6,890,500 Less : Bonus = (₱480,733)…

Q: Agency XYZ collected the following income during the month: Income Taxes – Individual, P510,000;…

A: Revenue is the amount that a company earns from normal activities conducted by the business for…

Q: Pepa Company has an agreement to pay its sales manager a bonus of 5% of the income after bonus and…

A: Calculation of bonus for the Year are as follows

Q: FI Company offered a bonus to its branch manager of 25% of income over P1,000,000 earned by the…

A: Bonus amount = (Income before tax - Bonus amount - P1,000,000) x Bonus rate Let the bonus amount = a

Q: 1. ALR Inc pays a weekly payroll of $255,000 that includes federal taxes withheld of $38,100, FICA…

A: Weekly Payroll: Employees with variable work schedules and those who work overtime will benefit from…

Q: Nature Company has an agreement to pay each sales manager a bonus of 5% of the entity's earnings and…

A: A bonus is a monetary remuneration that is far in excess of the ordinary installment assumptions for…

Q: Use the information for the next four (4) questions.ZXCVBNM Company has an agreement to pay the…

A: Income after tax = Income before bonus and before tax x (1-0.30) =  P7,875,000 x 0.70 = P5,512,500

Q: If ABC Company provide bonus to one of its officer of 20% on profit after bonus and income taxes,…

A: Let us take bonus = x

Q: JIMIN Company has an agreement to pay the executive officers a bonus of 5% of the entity’s earnings.…

A: The bonus is computed as follows

Q: If ABC Company provide bonus to one of its officer of 20% on profit after bonus and income taxes,…

A: Let bonus = a so, bonus = [(profit before bonus and taxes - bonus) x (1 - tax rate)] x 20% a =…

Q: Rainmian Company has agreed to pay its sales manager a bonus of 5% of his or her earnings after…

A: Bonus means the amount paid over and above the regular salary to employee for some extra work done.…

Q: 2. An entity reports profit before bonus and taxes of P1,800.00 during the year. The entity has an…

A: Tax means the mandatory payment made by assesse to the government without expecting anything…

Q: JIMIN Company has an agreement to pay the executive officers a bonus of 5% of the entity’s earnings.…

A: Bonus refers to a form of financial reward or form of compensation provided by the company to its…

Q: What is the corporate income tax liability at December 31, 2020?

A: Calculation of corporate income tax liability at December 31, 2020: Profit before the deduction of…

Q: Problem 4: JIMIN Company has an agreement to pay the executive officers a bonus of 5% of the…

A: Comments; Multiple questions asked  Bonus- It is the extra income apart from his wages/ salaries…

Q: Agency XYZ collected the following income during the month: Income Taxes – Individual, P500,000;…

A: solution : statement showing calculation of total revenue collected Income Taxes – Individual…

Q: Love Company has an incentive compensation plan under which a branch manager received 10% of the…

A: Net income after tax = Net income before tax - Tax expense…

Q: Staycee Co. decided to pay its sales manager a bonus of 7.5% of the company's earnings because of a…

A: SOLUTION- BONUS-IT IS A FINANCIAL COMPENSATION THAT IS ABOVE THE NORMAL PAYMENT EXPECTATIONS OF ITS…

Q: V Co. has an agreement to pay its sales manager a bonus of 7.5% of the company's earnings due to an…

A: Given that, V Co. has an agreement to pay its sales manager a bonus of 7.5% income for the year…

Q: This Company provides an incentive compensation plan under which its president receives a bonus…

A: Bonus = (Profit before tax + Bonus) X 10% Bonus = [(Profit after tax/ (100% - tax rate) + Bonus) X…

Q: The bonus agreement of Christian Company provides that the general manager shall receive an annual…

A: Income:- Income is the proportion of money a company maintains internally after reimbursing all…

Q: a Company has an agreement to pay its sales manager a bonus of 5% of income a ter tax. The income…

A: The amount of current liability for bonus = amount of bonus due to the sales manager for the year…

Q: JIMIN Company has an agreement to pay the executive officers a bonus of 5% of the entity’s earnings.…

A: Bonus is the additional amount given to owners or partners in the business for their outstanding…

Q: Use the information for the next four (4) questions. Lalala Company has an agreement to pay the…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: An accountant must pay taxes and payroll bonuses to employees from the company’s profits of…

A: Company's Profit =$2000,000

Q: SESAME-SEED Company has a bonus agreement which provides that the senior managers will receive an…

A: Let, Income before bonus and tax = X so, Income after tax = (X - bonus) x (1 - tax rate)

Q: Entity A has an incentive compensation plan under which the sales manager receives a bonus equal to…

A:

Q: Staycee Co. decided to pay its sales manager a bonus of 7.5% of the company's earnings because of a…

A: Tax means the mandatory payment made by assesse to the government without expecting anything…

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.