Berry Co/ provides an incentive compensation plan under which its president receives a bonus equal to 20% of the corporation's income in excess of P400,000 after income tax and after bonus. If income before tax and bonus is P1,600,000 and the effective tax rate is 30%, the amount of the bonus would be?

Berry Co/ provides an incentive compensation plan under which its president receives a bonus equal to 20% of the corporation's income in excess of P400,000 after income tax and after bonus. If income before tax and bonus is P1,600,000 and the effective tax rate is 30%, the amount of the bonus would be?

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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