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?
Q: A company has two products: A and B. It uses activity-based costing and has prepared the following…
A: Activity-based costing is the method of costing used for the allocation of overhead between two…
Q: What is the total cost of borrowing over the life of the bond? (Round answer to 0 decimal places,…
A: To figure out the total interest paid, you take the face value of the bond, multiply it by the…
Q: AMT, Inc., is considering the purchase of a digital camera for the maintenance of design…
A: External rate of return is the rate of return on a project where all the extra returns on the…
Q: incorporators in the form of the company’s equipment and machinery that had a carrying amount on…
A: Carrying amount of company PPE = P5000000 Fair value less cost to sell on June 30 2020 =…
Q: A certain machining job for a machine shop in Davao can be done on six existing lathes, on which the…
A: The size of order will be determined by calculating the per unit cost of each given order size on…
Q: Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Traction Treads Tire Co.…
A: When the actual performance does not match the expected performance, the variance occurs. The same…
Q: AEC purchased an equipment for its manufacturing plant that costs PhP 3 750 000. It is estimated to…
A: In the context of the given question, we are going to compute the book value of the plant after…
Q: . On January 1, 20x1, ABC sold a used vehicle with a historical cost of P2,000,0000 and accumulated…
A: Carrying Amount is the book value of an Assest which is recorded in financial Statement . When the…
Q: Sales Less: Cancellation Sales, net of cancellations Year of expiration for subscriptions: 2020…
A: Unearned revenue refers to the amount received in advance from the customer for which services will…
Q: A non-bank private agent sells a £1000 bond in an open market purchase by the Central Bank. If the…
A: Open market operations refers to the selling and purchasing of treasury bills or government bonds by…
Q: b) A trader buys a set of accessories that is listed at RM8000 with trade discounts of 15% and 5%.…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…
Q: Last month, Laredo Company sold 450 units for $25 each. During the month, fixed costs were $2,520…
A: Lets understand the basics. Break even point is a point at which no profit no loss condition arise.…
Q: Brier Company, manufacturer of car seat covers, provided the following standard costs for its…
A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…
Q: What is the gearing ratio for the year 2018? Use the information from IBM’s financial statements…
A: Gearing Ratio: Gearing ratios are a kind of financial ratio that compares one form of owner's equity…
Q: Given the provided 5 year cash inflows below calculate the project NPV. The discount rate will be…
A: Net Present value is calculated by taking out the difference of the present values of all the…
Q: Ared Company showed the following shareholders’ equity on January 1, 2020: Share capital 1,000,000…
A: A property dividend is a dividend in kind. In this kind of dividend instead of cash or shares, an…
Q: Additional information: 1. The investment in equity securities account includes an investment in…
A: Balance Sheet - This Statement shows the balance of assets liabilities and Equity as at the balance…
Q: Roots — Launch a new on-line customizable winter T-shirt to your summer customers.
A: A digital marketing agency is a business that offers a wide range of marketing services in one…
Q: A tax declaration contains the following data: Actual use of property Residential Market value:…
A: In the context of the given question, we are required to compute the total real property tax…
Q: A manufacturing company, VMTC PLC, makes the product, blitz. Monthly sales for the first five months…
A: The budget is prepared to estimate the requirements for the future period.
Q: Partners Nina, Ricci, and Guess, who share profit and losses in the ratio of 2:2:1, respectively,…
A: The Partnership is a relationship between two or more partners who have agreed to share the profit/…
Q: Why did the solvency status of Mia did not affect the cash distributed to Kia? Why no.26 & no.27…
A: Solvency refers to the company ability for meeting the financial obligations as well as the long…
Q: How much is the amount of provision for warranty in 2021?
A: Number of Cars Sold in a Year = 500 Number of Cars which can be…
Q: On January 1, 2021, Marshall Company acquired 100 percent of the outstanding common stock of Tucker…
A: Introduction: A consolidated balance sheet is prepared that reveals a major company´s financial…
Q: Cash Accounts Receivable Inventory Long-term Assets Accounts Payable Wages Payable Long-term…
A: Working capital helps to know the net liquidity position of the company. It is a difference of…
Q: ng!!!!
A: The answer has been mentioned below.
Q: In WEAK’s books, what amounts are recognized for the following?
A: The answer is stated below:
Q: Bong, Dong, and Tong are business partners sharing profits and losses 55%, 15%, and 30%,…
A: At the time of liquidation of the partnership, the value to be allocated to each partner would be…
Q: Toyboy (Pty) Ltd is a small company in the Cape, it manufactures household light fittings and sells…
A: The cost of the warranty repairs means the cost that is incurred in the process of repairing the…
Q: On January 1, 2019, Charlie Company. issued its 10 percent bonds in the face amount of P1,500,000.…
A: The bonds payable are issued at discount when market rate is higher than the coupon rate of bonds…
Q: A store purchases ear buds from the manufacturer for $5 each. Calculate the sticker price for the…
A: Gross Margin - Gross Margin is the profit earned by the organization from the sales made by the…
Q: A method of depreciation whereby the amount to recover is spread uniformly over the estimated life…
A: Depreciation refers to the reduction in the value of asset due to its normal use and tear and wear.…
Q: Apple Inc Please use Apple Inc’s complete annual report, including the notes to its financial…
A: In accounting each and every transaction has double effects and that is why accounting is known as a…
Q: On February 1, 2009, Alpha Company issued 5,000 of its P1,000 face value bonds at 110 plus accrued…
A: Formula: Net amount received from the issuance of the bonds = Issue value of the bonds + Accrued…
Q: Partners Soul and Mate who have been dividing profits and losses in 2 points the ratio of 3:2.…
A: Partnership means the agreement between the two or more person to do the business together and share…
Q: P Corp. recorded P65,000 investment income from S Corp., its 80% owned subsidiary for 2020 and…
A: In the context of the given question, we are required to compute the consolidated net income of the…
Q: Bennett’s purchased $1,500 in insurance for coverage from August 1 to November 1. What the Expense…
A: When payment for expenses increases the respective expense on the other hand the cash decreases by…
Q: Partnership net loss of P132,000 is to be divided between partners Doods and Elsie according to the…
A: Solution: In partnership, income is divided between partner in profit sharing ratio defined, if…
Q: Fblue acquired land with a fair value of P10,500,000 and paid for it in full by issuing P50 par…
A: The par value of shares means the value that is stated by the company at the time of the issue. The…
Q: Holland Corporation's annual report is as follows. March 31, 2023 March 31, 2024 Net Income…
A: Common stockholders are the owners of the company. They have voting rights. They are able to get…
Q: Christine works for Marian Transport in Québec and is paid $920.25 weekly. Her employer provides…
A: Christine's Net pay: $1000.44
Q: May 31, 2022 1. Let us assume, that in the management of a small hotel business providing 50 rooms…
A: Cost refers to the payment made for acquiring or producing a specific item. The buyer considers this…
Q: Financial Statements of a Manufacturing Firm The following events took place for Rushmore Biking…
A: The material to be used in the production during the period becomes part of work-in-process besides…
Q: A manufacturing company applies factory overhead based on direct labor hours. At the beginning of…
A: Variance is the result of the amount of expected value and actual results. It can be calculated by…
Q: Brier Company, manufacturer of car seat covers, provided the following standard costs for its…
A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…
Q: discounted payback method.
A: The payback period method is used to appraise various capital investment projects. It uses the cash…
Q: Cedie and Sarah are partners and together have equity of P150,000 in the partnership. Remy wishes to…
A: In the context of the given question, we are required to compute the contribution of the admitted…
Q: Mr Ahmed and Mr Mohammed are partners sharing profits and losses in the ratio of 7:3. Mr Sulaiman is…
A: Goodwill means the reputation of the company due to any factor like location , product , price ,…
Q: Gent Designs requires three units of part A for every unit of A1 that it produces. Currently, part A…
A: Cost when producing Direct materials $4.00 Direct labor…
Q: Cash Accounts Receivable Inventory Long-term Assets Accounts Payable Wages Payable Long-term…
A: The working capital is calculated as difference between current assets and current liabilities.
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?
Step by step
Solved in 2 steps
- Borat Company gives annual bonuses after the end of the year. Borat computes the bonuses based on the companys net income after deducting the bonuses but before deducting income taxes. Borats income before bonuses and income taxes is 565,000 for the current year. The effective income tax rate is 21%, and the bonus rate is 12%. Calculate Borats bonuses and income taxes for the current year. Round your final answer to two decimal places.A company has wants to earn an income of $60,000 after-taxes. If the tax rate is 32%, what must be the companys pre-tax income in order to have $60,000 after-taxes? A. $88,235 B. $19,200 C. $79,200 D. $143,000ABC Company has an agreement to pay its sales manager a bonus of 5% of the income after bonus and after tax. The income for the current year before bonus and tax is P5,250,000. The income tax rate is 30% of income after bonus. What amount should be reported as bonus of the sales manager for the current year?
- 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?Pepa Company has an agreement to pay its sales manager a bonus of 5% of the 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%. 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?
- 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 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.Century Company has a bonus agreement which provides that the general manager shall receive an annual bonus of 5% of the profit after bonus and tax. The income tax rate is 30%. The general manger received P120,000 for the current year as bonus. What is the income before tax?
- Use the information for the next four (4) questions. ABC 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.1.How much is the bonus, assuming bonus is a certain percent of the income before bonus and before tax? 2.How much is the bonus, assuming bonus is a certain percent of income after bonus but before tax? 3.How much is the bonus, assuming bonus is a certain percent of income after bonus and after tax? 4.How much is the bonus, assuming bonus is a certain percent of income after tax but before bonus?SESAME-SEED Company has a bonus agreement that 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 a bonus. What is the net income before bonus and tax? ANSWER IN GOOD ACCOUNTING FORM. THANK YOU :)Use the information for the next four (4) questions. QWERTY 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.1.How much is the bonus, assuming bonus is a certain percent of the income before bonus and before tax? 2.How much is the bonus, assuming bonus is a certain percent of income after bonus but before tax? 3.How much is the bonus, assuming bonus is a certain percent of income after bonus and after tax? 4.How much is the bonus, assuming bonus is a certain percent of income after tax but before bonus?