The profit for 2019 of Dwight Company before any doduction for bonus and income tax amounted to P2,500,000. Underan incentive compensation plan, the general manager is entitled to year-end bonus of 10% of the profit belore decuctingthe bonus but after deducting the income tax. Income tax rate is 30%. The manager's bonus for 2019 wasA. 169,903B. 180,412C. 227,273D. 163,551

Profit after Tax = Profit before deducting Bonus and Tax - Bonus - Tax

The profit for 2019 of Dwight Company before any deduction for bonus and income tax amounted to P2,500,000. Under an incentive compensation plan, the general manager is entitlod to year-end bonus of 10% of the profit before deducting the bonus but after deducting the income tax. Income tax rate is 30%. The manager's bonus for 2019 was A. 169,903 B. 180,412 C. 227,273 D. 163,551

The profit for 2019 of Dwight Company before any deduction for bonus and income tax amounted to P2,500,000. Under an incentive compensation plan, the general manager is entitlod to year-end bonus of 10% of the profit before deducting the bonus but after deducting the income tax. Income tax rate is 30%. The manager's bonus for 2019 was A. 169,903 B. 180,412 C. 227,273 D. 163,551

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 actuarial present value of future benefits earned by employees for services rendered in 2019 amounted to 55250. DBO opening - 942000 plant assets opening - 660000 return - 7% actual return - 45000 contributions - 145350 a) calculate pension expense b) calculate net defined obligation liability/asset surplus or deficit.
You gathered the following information related to Ashley Company's the defined benefit plan for the current year ended December 31: • Fair value of plan assets: P2,100 million at January 1, and P2,300 million at December 31 • Present value of obligation to provide benefits: P2,200 million at January 1, and P2,600 million at December 31 • Contributions paid to the fund: P80 million • Benefits paid to retired employees: P50 million The defined benefit cost for the year is O P200 million O P120 million P280 million O P250 million
Joshua Company has a define contribution plan that covers its existing employees. The terms of the plan require Joshua to contribute 5% of the annual employee salaries to the retirement plan each year. The payroll shows the annual salaries and contributions made as follows: Year Gross Payroll Contributions made 2021 P10,000,000 P670,000 2022 12,200,000 430,000 How much is the benefit expense in 2022 profit or loss and the amount of prepaid (accrued) banefit as of December 31.2022? O P430.000 and P180,000 accrued O P610,000 and P180,000 accrued O P430,000 and P10,000 prepaid O P610.000 and P10.000 prepaid
PQR Company provided the following information for the current year:· Projected Benefit Obligation, January 1: 3,500,000· Pension benefits paid to retired employees: 250,000· Past service costs: 500,000· Actuarial losses arising from remeasurement of projected benefit obligation: 200,000· Projected Benefit Obligation, December 31: 5,000,000Discount rate based on high-quality corporate bonds is 10%. How much is current service cost during the year?
The following information related to the Postretirement Benefits (health) for the Union Company on 12/31/2020: Expected postretirement Benefits Obligation (EPBO) $ 800,000, and the Accumulated Postretirement Benefits Obligation (APBO) is $400,000. Attribution period 20 years. Number of years employees worked to date 10 years. Interest rate 10%. Required: a. Calculate the EPBO at end of 2021. b. Calculate accumulated postretirement benefits (APBO) for 2021. c. Analyze the increase in 2021 APBO.
Greg Company provides retirement benefits to employees through defined contribution plan. The plan provides that Greg Company shall contribute annually 9% of gross payroll to a funding agency. In addition, the entity is also required to contribute 6% of annual sales exceeding 15,000,000. During 2020, gross payroll of the company was P 6,500,000 and total sales amounted to P 32,000,000. How much is the retirement benefit expense taken to profit or loss for the year 2020? Assuming that during 2020, the company contributed P 1,700,000 to the trustee. How much is the prepaid or accrued benefit arising from the transaction?
A contractor with an effective tax rate of 35% has the following for a tax year: gross income of $155,000, other income of $4000, expenses of $45,000, and other deductions and exemptions of $12,000. The income tax due is closest to:a. $35,700b. $42,700c. $51,750d. $55,750
On January 1 of the current reporting year, Coda Company's projected benefit obligation was $29.3 million. During the year, pension benefits paid by the trustee were $3.3 million. Service cost was $9.3 million. Pension plan assets earned $4.3 million as expected. At the end of the year, there was no net gain or loss and no prior service cost. The actuary's discount rate was 10%. Required:Determine the amount of the projected benefit obligation at December 31. (Enter your answers in millions rounded to 2 decimal places. Amounts to be deducted should be indicated with a minus sign.)
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An employee received the following benefits: regular compensation income, net of P25,000 SSS, PHIC & HDMF employee share - P850,000; 13th month pay - P120,000; De minimis benefits within their limits - P90,000; Excess de minimis benefits - P70,000; Other de minimis benefits - P30,000; Other fringe benefits - P60,000. Using the tax table below, how much is income tax due of this employee? Tax Due is: If Taxable Income is: Not over P 250,000 250,000 but not over P 400,000 but not over P Over P Over P 400.000 20% of the excess over P 250,000 800.000 P 30.000+25% of the excess over P 400.000 Over P 800,000 but not over P 2,000,000 P 130,000+30% of the excess over P 800,000 Over P 2,000,000 but not over P 8.000.000 P 480,000 + 32% of the excess over P 2,000,000 Over P 8,000,000 |P 2.410.000 + 35% of the excess over P 8,000,000 (Answer must have no peso sign, no decimals & no extra spaces in between. Follow this format: X,XXX,XXX)
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Assume that at the beginning of the current year, a company has a net gain-AOCI of $25,600,000. At the same time, assume the PBO and the plan assets are $222,400,000 and $153,500,000, respectively. The average remaining service period for the employees expected to receive benefits is 10 years. What is the amount of amortization to pension expense for the year? $1,968,000. $344,000. $336,000. $689,000.