MY MEDALS ARE SHOOKT ENTERPRISE distributes annual bonuses to its sales manager and two sales agents. The company reported P2,000,000 profit for 2019 before bonuses and taxes. Income taxes average 30%. How much is the total amount of bonus if bonus of each is computed at 15% of profit after taxes and bonuses? a. P190,045 b. P397,476 c. P479,087 d. P570,135 Use the same information in MC 10. How much should the sales manager and each sales agent receive respectively, if the sales manager gets 15% and each sales agent gets 10% of profit after bonuses but before income taxes? a. P857,143 and P571,428 b. P518,519 and P518,518 c. P222,222 and P148,148 d. P195,000 and P130,000

MY MEDALS ARE SHOOKT ENTERPRISE distributes annual bonuses to its sales manager and two sales agents. The company reported P2,000,000 profit for 2019 before bonuses and taxes. Income taxes average 30%. How much is the total amount of bonus if bonus of each is computed at 15% of profit after taxes and bonuses? a. P190,045 b. P397,476 c. P479,087 d. P570,135 Use the same information in MC 10. How much should the sales manager and each sales agent receive respectively, if the sales manager gets 15% and each sales agent gets 10% of profit after bonuses but before income taxes? a. P857,143 and P571,428 b. P518,519 and P518,518 c. P222,222 and P148,148 d. P195,000 and P130,000

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 10P: Bonus Obligation and Income Tax Expense James Kimberley, president of National Motors, receives a...

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Bonus Obligation and Income Tax Expense James Kimberley, president of National Motors, receives a bonus of 10% of Nationals profits above 1,500,000, before the bonus and the corporations income taxes are deducted. Nationals effective income tax rate is 21%. Profits before income taxes and his bonus are 5,000,000 for 2019. Required: 1. Compute the amount of Kimberleys bonus for 2019. 2. Compute National Motors income tax expense for 2019. 3. Prepare journal entries at the end of 2019 to record the bonus and income taxes. 4. Show how the bonus and income taxes would be reported on National Motors December 31,2019, balance sheet.
10. MY MEDALS ARE SHOOKT ENTERPRISE distributes annual bonuses to its sales manager and two sales agents. The company reported P2,000,000 profit for 2019 before bonuses and taxes. Income taxes average 30%. How much is the total amount of bonus if bonus of each is computed at 15% of profit after taxes and bonuses? * a. P190,045 b. P397,476 О с. Р479,087 O d. Р570,135
10. MY MEDALS ARE SHOOKT ENTERPRISE distributes annual bonuses to its sales manager and two sales agents. The company reported P2,000,000 profit for 2019 before bonuses and taxes. Income taxes average 30%.
ABC Co. distributes annual bonus to its sales manager. The company reported 2 million profit for 2021 before bonus and income tax. Income tax of ABC Co. is 25%. What is the amount of bonus if bonus is computed at 10% of profit after taxes and bonuses?
The sales manager of the Walbrook Company receives an annual bonus of 10% of net income after bonus and taxes. In 2019, Walbrook's income, before bonus and taxes, was $400,000. The effective tax rate is 30%. Required:Compute the sales manager's bonus and the income tax expense for the Walbrook Company. Round bonus to dollars and income tax expenses to cents. Bonus $fill in the blank 1 Income tax expense $fill in the blank 2
ABC Corporation pays bonuses to its Chief Finance officer. The company had profit for 2021 of P 5,000,000 before bonuses and income taxes. Assuming ABC corporation gives 10% bonus after income taxes, how much would be the bonus payable recognized if the income tax rate is 30%? possible answers P 360,824.74 P 1,391,752.58 P 3,247,422.68 P 339,805.83
ABC Corporation pays bonuses to its Chief Finance officer. The company had profit for 2021 of P 5,000,000 before bonuses and income taxes. Assuming ABC corporation gives 10% bonus after bonus and income taxes, how much would be the income taxes? P 327,102.80 P 1,401,869.16 P 3,247,422.68 P 3,271,028.04
ABC Corporation pays bonuses to its Chief Finance officer. The company had profit for 2021 of P 5,000,000 before bonuses and income taxes. Assuming ABC corporation gives 10% bonus after income taxes, how much would be the bonus payable recognized if the income tax rate is 30%? P 360,824.74 P 1,391,752.58 P 3,247,422.68 P 339,805.83
Maryland company offers a bonus plan to its employees equal to 3% of net income. Maryland's net income is expected to be $960,000. The amount of the employee's bonus expense is estimated to be? A. $27,961B. $28,800C. $29,000D. $29,691E. $30,000
Baekhyun Company distributes annual bonuses to its sales manager and two sales supervisors. The company reported P2,000,000 profit for 2021 before bonuses and income tax. Income tax rate is P30%. The bonus is 15% of profit after bonuses but before income tax.How much is the total amount of bonus?
7. Garfield Company pays its general manager an annual bonus. For the year 2021, the company reported a profit of 8,000,000 before deductions for bonus and corporate income taxes. The corporate income tax is 30%. 1. Bonus is 8% of profit before deduction for both bonus and income taxes. a. 592,593 b. 640,000 c. 459,016 d. 424,242 2. Bonus is 8% of profit after deduction for bonus but before deduction for income taxes. a. 592,593 b. 640,000 c. 459,016 d. 424,242 3. Bonus is 8% of profit before deduction for bonus but after deduction for income taxes. a. 592,593 b. 640,000 c. 459,016 d. 424,242 4. Bonus is 8% of profit after deduction for both bonus and income taxes. a. 592,593 b. 640,000 c. 459,016 d. 424,242
Entity A has an incentive compensation plan under which the sales manager receives a bonus equal to 10percent of the company's income after deductions for bonus and income taxes. Income before bonus and incometaxes is P500,000. The effective income tax rate is 30 percent. How much is the amount of bonus (rounded to the nearest peso)?a. 32,710 b. 60,748 c. 30,974 d. 37,210 How much is the amount of income tax?a. 131,776 b. 140,708 c. 138,837 d. 140,187