58. The terms and conditions of employment with Filler Company include entitlement to share in the staff bonus system, under which 5% of the profit for the year before charging the bonus is allocated to the bonus pool, provided the annual profit exceeds P50,000,000. The profit before accrual of any bonus for the first half of the current year amounts to P40,000,000 and the latest estimate of the profit before accrual of any bonus for the year as a whole is P60,000,000. What amount should be recognized as bonus expense for the first half of the current year? a. 1,500,000 b. 3,000,000 c. 2,000,000 d. 0

58. The terms and conditions of employment with Filler Company include entitlement to share in the staff bonus system, under which 5% of the profit for the year before charging the bonus is allocated to the bonus pool, provided the annual profit exceeds P50,000,000. The profit before accrual of any bonus for the first half of the current year amounts to P40,000,000 and the latest estimate of the profit before accrual of any bonus for the year as a whole is P60,000,000. What amount should be recognized as bonus expense for the first half of the current year? a. 1,500,000 b. 3,000,000 c. 2,000,000 d. 0

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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