How much is the bonus before bonus and before tax

Assignment Help Financial Accounting

Reference no: EM132809819

ADHERE TO STICK Co. grants its managerial employees bonus in the form of profit sharing.

Information on operations in 20x1 is shown below:

Profit before tax ?4,000,000

Bonus rate or percentage 10%

Income tax rate 30%

Problem 1: How much is the bonus "before bonus and before tax?"

a. 363,636

b. 280,000

c. 400,000

d. 288,660

Problem 2: How much is the bonus "after bonus and before tax?"

a. 400,000

b. 363,636

c. 261,684

d. 245,798

Problem 3: How much is the bonus "before bonus and after tax?"

a. 363,636

b. 261,684

c. 245,798

d. 288,660

Problem 4: How much is the bonus "after bonus and after tax?"

a. 363,636

b. 261,682

c. 245,798

d. 288,660

Reference no: EM132809819

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