Bernie Bird Corporation provides a bonus equal to 10% of Bernie’s income in excess of P100,000 before deducting income tax but after deducting bonus. If income before income tax and bonus is P320,000 and the effective tax rate is 40%, the amount of the bonus should be a. P20,000 b. P22,000 c. P32,000 d. P44,000
Bernie Bird Corporation provides a bonus equal to 10% of Bernie’s income in excess of P100,000 before deducting income tax but after deducting bonus. If income before income tax and bonus is P320,000 and the effective tax rate is 40%, the amount of the bonus should be a. P20,000 b. P22,000 c. P32,000 d. P44,000
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 10PA: Lemur Corp. is going to pay three employees a year-end bonus. The amount of the year-end bonus and...
Related questions
Question
Bernie Bird Corporation provides a bonus equal to 10% of Bernie’s income in excess of P100,000 before deducting income tax but after deducting bonus. If income before income tax and bonus is P320,000 and the effective tax rate is 40%, the amount of the bonus should be
a. P20,000
b. P22,000
c. P32,000
d. P44,000
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College