The incomplete income statement of Bramble Corp. follows. Sales revenue Cost of goods sold Gross profit Administrative and selling expenses Profit-sharing bonus to employees Income before income taxes Income taxes Net income $1,010,000 ? $10,124,000 7,084,000 3,040,000 ? ? The employee profit-sharing plan requires that 10% of all profits remaining after the deduction of the bonus and income tax be distributed to the employees by the first day of the fourth month following each year end. Bramble follows ASPE, the income tax rat is 45%, and the bonus is tax-deductible.
The incomplete income statement of Bramble Corp. follows. Sales revenue Cost of goods sold Gross profit Administrative and selling expenses Profit-sharing bonus to employees Income before income taxes Income taxes Net income $1,010,000 ? $10,124,000 7,084,000 3,040,000 ? ? The employee profit-sharing plan requires that 10% of all profits remaining after the deduction of the bonus and income tax be distributed to the employees by the first day of the fourth month following each year end. Bramble follows ASPE, the income tax rat is 45%, and the bonus is tax-deductible.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The incomplete income statement of Bramble Corp. follows.
Sales revenue
Cost of goods sold
Gross profit
Administrative and selling expenses
Profit-sharing bonus to employees
Income before income taxes
Income taxes
Net income
(a)
Your answer is partially correct.
Sales revenue
Cost of goods sold
Gross profit
Administrative and selling expenses
Profit-sharing bonus to employees
Income before income taxes
$1,010,000
Income taxes
?
Net income
$10,124,000
7,084,000
The employee profit-sharing plan requires that 10% of all profits remaining after the deduction of the bonus and income tax be
distributed to the employees by the first day of the fourth month following each year end. Bramble follows ASPE, the income tax rat
is 45%, and the bonus is tax-deductible.
3,040,000
?
?
Complete the condensed income statement of Bramble for the year ended December 31, 2023. You will need to develop two
simultaneous equations to solve for the bonus amount: one for the bonus and one for the tax. (Round answers to O decimal places,
e.g. 5,275.)
?
$?
BRAMBLE CORP.
Income Statement
For the Year Ended December 31, 2023
$1,010,000
1948392
69
$10,124,000
7,084,000
3,040,000
2,958,392
81608
36,724
44,885
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