An accountant must pay taxes and payroll bonuses to employees from the company’s profits of $2,000,000. The total tax is 40% of the amount left after bonuses are paid, and the total paid in bonuses is 10% of the amount left after taxes. Find the total tax and the total bonus amount.

PAYROLL ACCT.,2019 ED.(LL)-TEXT
19th Edition
ISBN:9781337619783
Author:BIEG
Publisher:BIEG
Chapter4: Income Tax Withholding
Section: Chapter Questions
Problem 14QR: Trowbridge Company has just completed the processing of its year-end payroll and distributed all the...
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An accountant must pay taxes and payroll bonuses to employees from the company’s profits of $2,000,000. The total tax is 40% of the amount left after bonuses are paid, and the total paid in bonuses is 10% of the amount left after taxes. Find the total tax and the total bonus amount.

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