Determine the bonus expense that should be reported

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In January 2020, BC Co. estimated that its year-end bonuses to executives for calendar 2020 would be $900,000. In February 2020, $870,000 was paid in bonuses for the 2019 year-end. The estimate for 2020 is subject to year-end adjustment. BC Co. received a major unbudgeted order in early 2020 which anticipated the results for the year would exceed 110% of the original annual budget and by March 31, 2020 BC Co. was exceeding all of its budgeted targets.

Problem 1: Determine, if any, the bonus expense that should be reported in BC Co.'s interim income statement for the three months ended March 31, 2020.

Reference no: EM132969940

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