Calculation of the amount of the bonus

Assignment Help Accounting Basics

Reference no: EM13138151

Wilson Co. has an agreement with the sales manager taht she is to recieve a bonus of 5% of net income after deduction of the bonus and income taxes. COmpany income before deduction of the bonus and income taxes is $250,000. Income taxes are 30% and the bonus is deductible for taxes.

A) Show your calculation of the amount of the bonus to the nearest dollar

B) Show your calculation of the taxes to the nearest dollar.

Reference no: EM13138151

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