Able Company provides an incentive compensation plan under which its president received a bonus equal to 10% of the corporation’s income before income tax but after deduction of the bonus. If the tax rate is 35% and net income after bonus and income tax was P2,600,000, what was the amount of the bonus? A 260,000 B 200,000 C 400,000 D 440,000

Able Company provides an incentive compensation plan under which its president received a bonus equal to 10% of the corporation’s income before income tax but after deduction of the bonus. If the tax rate is 35% and net income after bonus and income tax was P2,600,000, what was the amount of the bonus? A 260,000 B 200,000 C 400,000 D 440,000

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter6: Deductions And Losses: In General

Section: Chapter Questions

Problem 30CE

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This lesson is under non-financial liabilities.
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