7) Hua Company has an agreement to pay its sales manager a bonus of 5% of income after bonus andafter tax. The income for the year before bonus and tax is P5,250,000. The income tax rate is 30% ofincome after bonus. Suppose the bonus has not yet been paid, what amount of current liability for bonusshould be reported at year end?

The amount of current liability for bonus = amount of bonus due to the sales manager for the year…

a Company has an agreement to pay its sales manager a bonus of 5% of income a ter tax. The income for the year before bonus and tax is P5,250,000. The income tax come after bonus. Suppose the bonus has not yet been paid, what amount of current lia

a Company has an agreement to pay its sales manager a bonus of 5% of income a ter tax. The income for the year before bonus and tax is P5,250,000. The income tax come after bonus. Suppose the bonus has not yet been paid, what amount of current lia

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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Question

7) Hua Company has an agreement to pay its sales manager a bonus of 5% of income after bonus and
after tax. The income for the year before bonus and tax is P5,250,000. The income tax rate is 30% of
income after bonus. Suppose the bonus has not yet been paid, what amount of current liability for bonus
should be reported at year end?

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