ble Company provides an incentive compensation plan under which its president received a bonus qual to 10% of the corporation's income before income tax but after deduction of the bonus. the tax rate is 35% and net income after bonus and income tax was P2,600,000, what was the amoun f the bonus? 260,000 400,000 440,000 200,000

ble Company provides an incentive compensation plan under which its president received a bonus qual to 10% of the corporation's income before income tax but after deduction of the bonus. the tax rate is 35% and net income after bonus and income tax was P2,600,000, what was the amoun f the bonus? 260,000 400,000 440,000 200,000

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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Smithkline established an incentive program for its president. This plan compensates the president with an annual bonus of 20% on the operating income of the corporation net of contributions and after deducting the bonus itself. If the tax rate is 30% and the operating income for this year was $ 800,000, the president's bonus will be: a) $ 120,000 b) $ 100,000 c) $ 63,156 d) $ 98,246
Delta Cron, the president of the VARIANT COMPANY, receives 15% of the net income (after deducting taxes but before bonuses) as a bonus arrangement with the company. For the current year, the net income after deducting the provision for income taxes and bonus is P5,000,000 The bonus is not deductible for tax purposes, and the tax rate is 20% Compute the appropriate provision for income tax for the year.
es ! Required information [The following information applies to the questions displayed below.]. a) Tax BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September under each of three separate situations (a), (b), and (c). Note: Round your answers to 2 decimal places. FUTA SUTA b) Tax a. b. C. FICA-Social Security FICA-Medicare FUTA SUTA c) Tax Gross Pay through August 31 $ 5,300 2,800 132,200 FICA-Social Security FICA-Medicare FICA-Social Security FICA-Medicare FUTA SUTA Gross Pay for September $ 2,600 2,900 8,800 September Earnings Subject to Tax 2,600.00 2,600.00 $ September Earnings Subject to Tax 2,900.00 2,900.00 September Earnings Subject to Tax 8,800.00 Tax Rate 6.20% 1.45%…
White Lemon Cameras has the following employees: Annual Taxable Wages $ 22,200 $ 34,800 $ 44,400 $ 37,000 $ 53,600 Employee Name M. Haskell V. Papadopoulos P. Anderson C. Billingmeier C. Johnson Required: White Lemon Cameras's SUTA tax rate is 5.4 percent and applies to the first $11,600 of employee wages. White Lemon Cameras's FUTA tax rate of 6% is subject to a 5.4% reduction and applies to the first $7,000 of employee wages. What is the annual amount of FUTA and SUTA taxes due for each employee? Note: Round your answers for "SUTA Due" to 2 decimal places. Employee M. Haskell V. Papadopoulos P. Anderson C. Billingmeier C. Johnson FUTA Due SUTA Due
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JIMIN Company has an agreement to pay the executive officers a bonus of 5% of the entity’s earnings. Theincome for the year before bonus and tax is ₱8,750,000. The income tax rate is 30% of income after bonus. 1. Bonus is based on income before bonus and before tax.2. Bonus is based on income after bonus and after tax.
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