Ana Rosa, president of the Apoka Company, has a bonus arrangement with the company under which she receives 10% of the net income after deducting taxes and bonuses each year. For the current year, the net income before deducting either the provision for income taxes or the bonus is P4,650,000. The bonus is deductible for tax purposes, and the tax rate is 30%. 1. Compute the appropriate provision for income tax for the year. 2. Determine the amount of Ana Rosa’s bonus.

Ana Rosa, president of the Apoka Company, has a bonus arrangement with the company under which she receives 10% of the net income after deducting taxes and bonuses each year. For the current year, the net income before deducting either the provision for income taxes or the bonus is P4,650,000. The bonus is deductible for tax purposes, and the tax rate is 30%. 1. Compute the appropriate provision for income tax for the year. 2. Determine the amount of Ana Rosa’s bonus.

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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