9. Georgy, Inc. has an incentive compensation plan under which the sales manager receives a bonus equal to 10 percent of the company's income before deductions for bonus but after deduction for income taxes. Income before bonus and income taxes is P400,000. The effective income tax rate is 30 percent. How much is the bonus (rounded to the nearest peso)? a. 40,000 b. 30,108 c. 28,866 d. 26,168 (Adapted)

9. Georgy, Inc. has an incentive compensation plan under which the sales manager receives a bonus equal to 10 percent of the company's income before deductions for bonus but after deduction for income taxes. Income before bonus and income taxes is P400,000. The effective income tax rate is 30 percent. How much is the bonus (rounded to the nearest peso)? a. 40,000 b. 30,108 c. 28,866 d. 26,168 (Adapted)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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
Yel Co. has a bonus agreement which provides that the general manger shall receive an annual bonus of 10% of the net income after bonus and tax. The income tax rate is 30%. The general manager received P 280,000 for the current year as bonus. What is the income before bonus and tax? * A.4,280,000 B.3,720,000 C.4,000,000 D.2,800,000
7. SESAME-SEED Company has a bonus agreement which provides that the senior managers will receive an annual bonus of 12% of the net income after bonus and tax. The income tax rate is 30%. The senior managers received ₱250,000 for the current year as bonus. What is the net income before bonus and tax?
ABC Co. distributes annual bonus to its sales manager. The company reported P2 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?
Use the information for the next four (4) questions. XYZ Company has an agreement to pay the sales manager a bonus of 5% of the entity's earnings. The income for the year before bonus and tax is P7,875,000 The income tax rate is 30% of income after bonus.How much is the bonus, assuming bonus is a certain percent of the income before bonus and before tax? How much is the bonus, assuming bonus is a certain percent of income after bonus but before tax? How much is the bonus, assuming bonus is a certain percent of income after bonus and after tax? How much is the bonus, assuming bonus is a certain percent of income after tax but before bonus?
The following information were provided by Hokaido Company: Income, P2,700,400; Bonus rate, 12%; Tax rate, 30%. 1. Compute for the bonus given that the bonus is a certain percent of income after bonus and after tax 2. Compute for the bonus given that the bonus is a certain percent of income after tax but before bonus 3. Compute for the bonus given that the bonus is a certain percent of income before bonus and before tax. 4. Compute for the bonus given that the bonus is a certain percent of income after bonus but before tax.
PROBLEM: Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages. Sparks Company's SUTA rate for next year is 3.25% because its reserve ratio falls into the state's 10% to less than 12% category [(contributions - benefits paid) ÷ average payroll = $414,867 ÷ $3,521,790 = 11.78%]. If the next bracket (12% to less than 14%) would give the company a lower tax rate of 3.05%, what would be the least amount of the voluntary contribution needed to qualify the company for the 3.05% SUTA tax rate?
Use the information for the next four (4) questions.ZXCVBNM Company has an agreement to pay the sales manager a bonus of 5% of the entity's earnings. The income for the year before bonus and tax is P7,875,000 The income tax rate is 30% of income after bonus.A.) How much is the bonus, assuming bonus is a certain percent of the income before bonus and before tax? B.) How much is the bonus, assuming bonus is a certain percent of income after bonus but before tax? C.) How much is the bonus, assuming bonus is a certain percent of income after bonus and after tax? D.) How much is the bonus, assuming bonus is a certain percent of income after tax but before bonus?
Bernie Bird Corporation provides a bonus equal to 10% of Bernie’s income in excess of P100,000 before deducting income tax but after deducting bonus. If income before income tax and bonus is P320,000 and the effective tax rate is 40%, the amount of the bonus should be a. P20,000 b. P22,000 c. P32,000 d. P44,000
A. Ferrero Company has an agreement to pay its sales manager a bonus of 10% of the income after bonus and tax.The income for the year before bonus and tax is P5,250,000. The income tax rate is 20% of income after bonus. 1. What is the bonus for the year?
Use the information for the next four (4) questions. Lalala Company has an agreement to pay the sales manager a bonus of 5% of the entity's earnings. The income for the year before bonus and tax is P7,875,000 The income tax rate is 30% of income after bonus.How much is the bonus, assuming bonus is a certain percent of the income before bonus and before tax? How much is the bonus, assuming bonus is a certain percent of income after bonus but before tax? How much is the bonus, assuming bonus is a certain percent of income after bonus and after tax? How much is the bonus, assuming bonus is a certain percent of income after tax but before bonus?
Problem 4: JIMIN Company has an agreement to pay the executive officers a bonus of 5% of the entity's earnings. The income for the year before bonus and tax is P8,750,000. The income tax rate is 30% of income after bonus. Requirements: Determine the BONUS under each of the following independent assumptions: А. 9. Bonus is based on income before bonus and before tax. В. Bonus is based on income after bonus and after tax. С. Bonus is based on income after bonus but before tax. D. Bonus is based on income after tax but before bonus