year before bonus and tax is P5,250,000. The income tax ratea bonus of 5% of the entity's earnings. The income for theNature Company has an agreement to pay the sales managerProblem 1-29 (ACP)Nature Company has an agreement to pay the sales manaa bonus of 5% of the entity's earnings. The income foryear before bonus and tax is P5,250,000. The income tax pis 30% of income after bonus.Required:Determine the bonus under each of the followinindependent assumptions:1 Bonus is a certain percent of the income before bonnand before tax.* f income after bonus hbefore tax.3. Bonus is a certain percent of income after bonus and after2.Bonus 1s a certain percent otax.4.Bonus is certain percent elincome.after tax but before bonus

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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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Required Answer each of the following questions by providing supporting computations. 1. Assume that the company’s income tax rate is 30% for all items. Identify the tax effects and after-tax amounts of the three items labeled pretax. 2. Compute the amount of income from continuing operations before income taxes. What is the amount of the income tax expense? What is the amount of income from continuing operations? 3. What is the total amount of after-tax income (loss) associated with the discontinued segment? 4. What is the amount of net income for the year?
The tax rates are as shown below: Taxable Income Tax Rate $ 0 - 50,000 15 % 50,001 - 75,000 25 % 75,001 - 100,000 34 % 100,001 - 335, 000 39 % Your firm currently has taxable income of $81,600. How much additional tax will you owe if you increase your taxable income by $22, 800 ?
The tax rates are as shown below: Taxable Income $0 - 50,000 50,001 - 75,000 75,001 100,000 100,001 - 335,000 Tax Rate 15% 25% 34% 39% Your firm currently has taxable income of $80,700. How much additional tax will you owe if you increase your taxable income by $21,900?
A corporation pays $15 per unit for the product it sells. For the corporation, is that revenue, a variable expense or a fixed expense?
Pertinent information for two alternatives A and B is shown below. If i=10 % / year and the effective income tax rate is 35%, answer the following true/false questions. Alt. A Alt.B 150,000 225,000 100,000 100,000 30,000 10,000 15,000 22,500 ADS-6: Years Recovery Period GDS: 5-Years Recovery Period Basis, $ Gross Income (Gl), $ Operating Expense (OE), $ Salvage Value, $ MARCS Depreciation Method The CFAT at the end of year 7 for Alt. A is less than $50,000. True O False
The gross income of the firm is $65,000, operating expense is $15,000, and other deductions and exemptions are $17,000. The other income of the firm is $6,000 and the effective tax rate is 18%. The annual income tax due is a. $5,400 b. $9,540 $6,480 d. $9,720
Entity A has an incentive compensation plan under which the sales manager receives a bonus equal to 10percent of the company's income after deductions for bonus and income taxes. Income before bonus and incometaxes is P500,000. The effective income tax rate is 30 percent. How much is the amount of bonus (rounded to the nearest peso)?a. 32,710 b. 60,748 c. 30,974 d. 37,210 How much is the amount of income tax?a. 131,776 b. 140,708 c. 138,837 d. 140,187

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