ADHER grants its managerial employees bonus in the form of profit shanng. Information on operations in 20x1 is shown below: P4,000,000 10% 30% 1. How much is the bonus "before bonus and before tax?" Profit before tax Bonus rate or percentage Income tax rate 2. How much is the bonus "after bonus and before tax?" 3. How much is the bonus "before bonus and after tax?" 4. How much is the bonus "after bonus and after tax?"

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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ADHERE TO STICK Co. grants its managerial employees bonus in the form of profit sharing. Information on
operations in 20xl is shown below:
Profit before tax
P4,000,000
Bonus rate or percentage
Income tax rate
10%
30%
1. How much is the bonus "before bonus and before tax?"
2. How much is the bonus "after bonus and before tax?"
3. How much is the bonus "before bonus and after tax?"
4. How much is the bonus "after bonus and after tax?"
Transcribed Image Text:ADHERE TO STICK Co. grants its managerial employees bonus in the form of profit sharing. Information on operations in 20xl is shown below: Profit before tax P4,000,000 Bonus rate or percentage Income tax rate 10% 30% 1. How much is the bonus "before bonus and before tax?" 2. How much is the bonus "after bonus and before tax?" 3. How much is the bonus "before bonus and after tax?" 4. How much is the bonus "after bonus and after tax?"
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