In 2022, Blair Corporation paid its CEO base compensation of $700,000 and a performance bonus of $500,000; the CEO was hired in January 2020. How much of the compensation can Blair deduct?
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- Orlando Company has a contract with its CEO to pay him a bonus during each of the years 2021 – 2024. The profit before deductions for bonus and income taxes were P14,500,000 in 2021; P18,000,000 in 2022; P22,500,000 in 2023; and P25,000,000 in 2024. The bonus of 25% is deductible for tax purposes in each year. The tax rate is 20%. The 2022 bonus is based on profit after bonus but before taxes. Compute the amount of the bonus for 2022. 2. Orlando Company has a contract with its CEO to pay him a bonus during each of the years 2021 – 2024. The profit before deductions for bonus and income taxes were P14,500,000 in 2021; P18,000,000 in 2022; P22,500,000 in 2023; and P25,000,000 in 2024. The bonus of 25% is deductible for tax purposes in each year. The tax rate is 20%. The 2024 bonus is based on profit after bonus and taxes Compute the amount of the bonus for 2024 3. Wizards Company sold 4,100,000 boxes of apple pie mix. Each box contains one coupon, in which 10 coupons, with P5…Orlando Company has a contract with its CEO to pay him a bonus during each of the years 2021 – 2024. The profit before deductions for bonus and income taxes were P14,500,000 in 2021; P18,000,000 in 2022; P22,500,000 in 2023; and P25,000,000 in 2024. The bonus of 25% is deductible for tax purposes in each year. The tax rate is 20%. Compute the amount of the bonus for 2021 if the bonus is based on profit bonus and taxes. 2.Knicks Company requires nonrefundable advance payments with special orders from customers for machinery constructed to their specifications. Information for 2023 follows: Customers advances, 12/31/22 P 500,000 Advances received with orders in 2023 840,000 Advances applied to orders shipped in 2023 600,000 Advances applicable to orders canceled in 2023 190,000 How much is the ending balance of advances on December 31, 2023?A company is considering two different proposals for computing the bonus for its new company president. The first plan states that the bonus would be equal to 6% of profits after the bonus but before tax have been deducted. The second method is based on profits after both tax and bonus have been deducted, at the rate of 12%. Income before income tax and bonus for 2021 is P 9,000,000. Income tax rate is 35%. How much is the amount of bonus under the second plan? How much is the amount of bonus under the first plan?
- Perry Industries has a defined benefit pension plan that specifies annual, year-end retirement benefits equal to 1.3% × Service years × Final year's salary. Carol was hired by Perry at the beginning of 2015. Clark is expected to retire at the end of 2054 after 40 years of service. Her retirement is expected to span 15 years. At the end of 2024, 10 years after being hired, her salary is $60,000. The company's actuary projects Clark's salary to be $210,000 at retirement. The actuary's discount rate is 6%. Required: Estimate the amount of Carol’s annual retirement payments for the 15 retirement years earned as of the end of 2024. Suppose Perry’s pension plan permits a lump-sum payment at retirement in lieu of annuity payments. Determine the lump-sum equivalent as the present value as of the earned retirement annuity at the expected date of retirement (the end of 2054). What is the company’s projected benefit obligation at the end of 2024 with respect to Carol? Navigation: Use the Open…This Company grants its managerial employees bonus in the form of profit sharing. Information on operations in 2021 is shown below: Profit before tax - P4,000,000 Bonus rate or percentage - 10% Income tax rate - 30% How much is the bonus if the bonus scheme is "after bonus but before tax?"FI Company offered a bonus to its branch manager of 25% of income over P1,000,000 earned by the branch. The income for the branch was P1,600,000 before tax and before bonus for 2021. The bonus is computed on income in excess of P1,000,000 after deducting the bonus but before deducting tax. The bonus of the branch manager for 2021 is Group of answer choices 120,000 150,000 250,000 320,000
- On December 31, 2020, Stormy & Co. started a defined benefit plan for its president. The plan provides for an annual pension to the executive, equal to 2% of the executive’s highest lifetime salary multiplied by number of years of service within the entity. On date of establishment, the president already has worked for ten years, and his current salary as of this date is P500,000. The president is expected to retire in 25 years, and his/her salary is expected to increase by 3% on average. He/she is also estimated to have a life expectancy of 15 years after retirement and will receive his/her annual pension at the end of each year after retirement. Market yield of high-quality corporate bonds is 8%. Below is the relevant PV and Future Value (FV) factors:· Future value of 1 at 3% for 25 periods: 2.094· PV of an ordinary annuity at 8% for 15 periods: 8.559· PV of 1 at 8% for 25 periods: 0.146How much is the projected benefit obligation upon establishment of the…In 2019, Austin Powers Corporation developed a new product that will be marketed in 2020. In connection with the development of this product, the following costs were incurred in 2019: research and development costs $400,000, materials and supplies consumed $60,000, and compensation paid to research consultants $125,000. It is anticipated that these costs will be recovered in 2022. What is the amount of research and development costs that Austin Powers should record in 2019 as a charge to expense?In 2019, Magenta Corporation paid compensation of 45,300 to the participants in a profit sharing plan. During 2019, Magenta Corporation contributed 13,200 to the plan. a. Calculate Magentas deductible amount for 2019. b. Calculate the amount of any contribution carryover from 2019.
- The terms and conditions of employment with the SM Inc. include entitlement to share in the staff bonus system, under which 5% of the profits for the year before charging the bonus are allocated to the bonus pool, provided the annual profits exceed P50,000,000. The profits (before accrual of any bonus) for the first half of 2021 amount to P40,000,000 and the latest estimate of the profits (before accrual of any bonus) for the year as a whole is P60,000,000. How much should be recognized in profit or loss in respect of the staff bonus for the half year to June 30, 2021, according to IAS 34 Interim financial reporting?Gail , Inc. has a bonus plan covering all employees. The total bonus is equal to 10% of Gail 's preliminary ( pre-bonus, pretax) income reduced by the income tax ( computed on the preliminary income for 2019 is P 1,000,000 and the income tax rate is 32%. How much is the bonus for 2019? * A.P 68,000 B.P 70,248 C.P 61,200 D.P 100,000Clark Industries has a defined benefit pension plan that specifies annual, year-end retirement benefits equal to: 1.5% × Service years Final year's salary Stanley Mills was hired by Clark at the beginning of 2005. Mills is expected to retire at the end of 2049 after 45 years of service. His retirement is expected to span 15 years. At the end of 2024, 20 years after being hired, his salary is $94,000. The company's actuary projects Mills's salary to be $410,000 at retirement. The actuary's discount rate is 6% For all requirements, round final answers to the nearest whole dollars. Do not round Intermediate calculations. Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) Required: 1. Estimate the amount of Stanley Mills's annual retirement payments for the 15 retirement years earned as of the end of 2024. 2. Suppose Clark's pension plan permits a lump-sum payment at retirement In lieu of annuity payments. Determine the…
