Reference no: EM133123298

Questions -

Q1. The Linden Company provides an incentive compensation plan under which the key management personnel receives a bonus equal to 20% of the income after bonus but before tax. The tax rate is 30% and net income before bonus and income tax was P3,150,000. The bonus is to be paid the following year. How much is the amount of bonus to key executive employees?

Q2. Anyong Company has a define contribution plan that covers its existing employees.  The terms of the plan required Anyong to contribute 5% of the annual employee salaries to the retirement plan each year. The payroll shows the annual salaries and contributions made as follows:

How much is the benefit expense in 2021?

Q3. Pacioli Company gives each of its 50 employees 12 days of paid vacation leave a year if they are employed at the end of the year. The vacation leave accumulates and maybe taken starting January 1 of the next year. The employees work 8 hours per day. In 2021, they made P40 per hour and in 2022 they made P45 per hour. During 2022, they took an average of 9 days of vacation each. The company's policy is to record the liability existing at the end of each year at the wage rate for that year.

What amount of liability for compensated absences would be reported on the 2022 statement of financial position?