Compute the amount of Raymond Moss bonus

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Reference no: EM132884185

Problem - Bonus Obligation - Raymond Moss, vice president of Moss Auto Parts, gets an annual bonus of 15% of any income, before deducting bonus and income taxes, above $100,000. Income before bonus and income taxes is $250,000. The effective income tax rate is 21%.

Required -

1. Compute the amount of Raymond Moss's bonus.

2. Compute the income tax expense.

Reference no: EM132884185

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