The bonus agreement of Christian Company provides that the general manager shall receive an annual bonus of 10% of the net income after bonus and tax. The income tax rate is 30%. The general manager received P280,000 for the current year as bonus. What is the income before bonus and tax? O 4,280,000 O 4,000,000 O 2,800,000 O 3,720,000

The bonus agreement of Christian Company provides that the general manager shall receive an annual bonus of 10% of the net income after bonus and tax. The income tax rate is 30%. The general manager received P280,000 for the current year as bonus. What is the income before bonus and tax? O 4,280,000 O 4,000,000 O 2,800,000 O 3,720,000

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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Question

The bonus agreement of Christian Company provides that the general
manager shall receive an annual bonus of 10% of the net income after
bonus and tax. The income tax rate is 30%. The general manager
received P280,000 for the current year as bonus.
What is the income before bonus and tax?
4,280,000
4,000,000
2,800,000
3,720,000
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