Nature Company has an agreement to pay each sales manager a bonus of 5% of the entity's earnings and each sales personnel 2%. Nature has one sales manager and two sales personnel. The income for the year before bonus and tax is P5,250,000. The income tax rate is 30% of income after bonus. The bonus is based on net income before bonus but after tax. How much is the bonus of each sales personnel? (round the final answer to the nearest whole number)

Nature Company has an agreement to pay each sales manager a bonus of 5% of the entity's earnings and each sales personnel 2%. Nature has one sales manager and two sales personnel. The income for the year before bonus and tax is P5,250,000. The income tax rate is 30% of income after bonus. The bonus is based on net income before bonus but after tax. How much is the bonus of each sales personnel? (round the final answer to the nearest whole number)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 8RE: Borat Company gives annual bonuses after the end of the year. Borat computes the bonuses based on...

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Borat Company gives annual bonuses after the end of the year. Borat computes the bonuses based on the companys net income after deducting the bonuses but before deducting income taxes. Borats income before bonuses and income taxes is 565,000 for the current year. The effective income tax rate is 21%, and the bonus rate is 12%. Calculate Borats bonuses and income taxes for the current year. Round your final answer to two decimal places.
Lemur Corp. is going to pay three employees a year-end bonus. The amount of the year-end bonus and the amount of federal income tax withholding are as follows. Lemurs payroll deductions include FICA Social Security at 6.2%, FICA Medicare at 1.45%, FUTA at 0.6%, SUTA at 5.4%, federal income tax as previously shown, state income tax at 5% of gross pay, and 401(k) employee contributions at 2% of gross pay. Record the entry for the employee payroll on December 31.
Nature Company has an agreement to pay each sales manager a bonus of 5% of the entity's earnings and each sales personnel 2%. Nature has two sales manager and two sales personnel. The income for the year before bonus and tax is P5,000,000. THe income tax rate is 30% of income after bonus. The bonus is based on net income after bonus and after tax. How much is the total bonus of both sales personnel? (round the final answer to the nearest whole number)
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