Hua Company has an agreement to pay its sales manager a bonus of 5% of income after bonus and after tax. The income for the year before bonus and tax is P5,250,000. The income tax rate is 30% of income after bonus. Suppose the bonus has not yet been paid, what amount of current liability for bonus should be reported at year end?

Hua Company has an agreement to pay its sales manager a bonus of 5% of income after bonus and after tax. The income for the year before bonus and tax is P5,250,000. The income tax rate is 30% of income after bonus. Suppose the bonus has not yet been paid, what amount of current liability for bonus should be reported at year end?

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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