V Co. has an agreement to pay its sales manager a bonus of 7.5% of the company's earnings due to an exemplary performance. The income for the year before bonus and tax is ₱6,890,500. Income tax rate is 32% of income after bonus. The bonus is computed after deduction for both bonus and tax.   Requirements: Compute for the amount of bonus for the year.  Compute for the income after tax for the year.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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V Co. has an agreement to pay its sales manager a bonus of 7.5% of the company's earnings due to an exemplary performance. The income for the year before bonus and tax is ₱6,890,500. Income tax rate is 32% of income after bonus. The bonus is computed after deduction for both bonus and tax.

 

Requirements:

Compute for the amount of bonus for the year. 

Compute for the income after tax for the year. 

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