7. Garfield Company pays its general manager an annual bonus. For the year 2021, the companyreported a profit of 8,000,000 before deductions for bonus and corporate income taxes. Thecorporate income tax is 30%.1. Bonus is 8% of profit before deduction for both bonus and income taxes.a. 592,593b. 640,000c. 459,016d. 424,2422. Bonus is 8% of profit after deduction for bonus but before deduction for income taxes.a. 592,593b. 640,000c. 459,016d. 424,2423. Bonus is 8% of profit before deduction for bonus but after deduction for income taxes.a. 592,593b. 640,000c. 459,016d. 424,2424. Bonus is 8% of profit after deduction for both bonus and income taxes.a. 592,593b. 640,000c. 459,016d. 424,242

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Answered: 7. Garfield Company pays its general…

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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The following information is available for Hunt Company after its first year of operations: Income before taxes $250,000 Federal income tax payable $104,000 Deferred income tax (4,000) Income tax expense 100,000 Net income $150,000 Hunt estimates its annual warranty expense as a percentage of sales. The amount charged to warranty expense on its books was £95,000. Assuming a 40% income tax rate, what amount was actually paid this year for warranty claims?
100 Willobee Co. reported book income of $21,399,000 for 2023. This number included $1,284,000 of income from exempt municipal bonds. For tax purposes, the company reported $4,622,000 less in depreciation than that reported for GAAP purposes. The company also made tax payments of $3,210,000 during the year. If Willobee Co.'s 2023 tax rate was 30%, what will they report as deferred taxes on their 2023 balance sheet? ( 3) $1,386,600 deferred tax liability $1,771,800 deferred tax liability O $1,771,800 deferred tax asset $1,386,600 deferred tax asset
The gross income of the firm is $65,000, operating expense is $15,000, and other deductions and exemptions are $17,000. The other income of the firm is $6,000 and the effective tax rate is 18%. The annual income tax due is a. $5,400 b. $9,540 $6,480 d. $9,720
Ivanhoe pays a weekly payroll of $250000 that includes federal income taxes withheld of $38100, FICA taxes withheld of $23970, and 401(k) withholdings of $26500. What is the effect on assets and liabilities from this transaction? Assets decrease $187930 and liabilities decrease $62070. Assets decrease $187930 and liabilities increase $62070. Assets decrease $161430 and liabilities increase $88570. Assets decrease $250000 and liabilities do not change.
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
11. The Dot Corporation has changed its year-end from a calendar year-end to August 31. The income for its short period from January 1 to August 31 is $54,000. The tax for this short period is: a.$2,040 b.$8,667 c.$11,340 d.$6,250
During the year, Zeno Company has a SUTA tax rate of 6.3%. The taxable payroll for the year for FUTA and SUTA is $77000. Conpute: *0.6% was used for the FUTA tax rate for employers. Net FUTA tax? Net SUTA tax? Total unemployment taxes?

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