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The incomplete income statement of Bridgeport Corp. follows. Sales revenue Cost of goods sold $10,695,000 7,535,000 Gross profit 3,160,000 Administrative and selling expenses $1,009,000 Profit-sharing bonus to employees ? ? Income before income taxes ? Income taxes Net income ? $? The employee profit-sharing plan requires that 20% 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. Bridgeport follows ASPE, the income tax rate is 35%, and the bonus is tax-deductible. (a)

The incomplete income statement of Bridgeport Corp. follows. Sales revenue Cost of goods sold $10,695,000 7,535,000 Gross profit 3,160,000 Administrative and selling expenses $1,009,000 Profit-sharing bonus to employees ? ? Income before income taxes ? Income taxes Net income ? $? The employee profit-sharing plan requires that 20% 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. Bridgeport follows ASPE, the income tax rate is 35%, and the bonus is tax-deductible. (a)

FINANCIAL ACCOUNTING
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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The incomplete income statement of Bridgeport Corp. follows. Sales revenue Cost of goods sold $10,695,000 7,535,000 Gross profit 3,160,000 Administrative and selling expenses $1,009,000 Profit-sharing bonus to employees ? ? Income before income taxes ? Income taxes Net income ? $? The employee profit-sharing plan requires that 20% 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. Bridgeport follows ASPE, the income tax rate is 35%, and the bonus is tax-deductible. (a)
Transcribed Image Text:The incomplete income statement of Bridgeport Corp. follows. Sales revenue Cost of goods sold $10,695,000 7,535,000 Gross profit 3,160,000 Administrative and selling expenses $1,009,000 Profit-sharing bonus to employees ? ? Income before income taxes ? Income taxes Net income ? $? The employee profit-sharing plan requires that 20% 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. Bridgeport follows ASPE, the income tax rate is 35%, and the bonus is tax-deductible. (a)
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