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Ronald Company has an incentive compensation plan under which a branch manager received 10% of the branch income after deduction of the bonus but before deduction of income tax.
Branch income for the current year before the bonus and income tax was P1,650,000. The tax rate was 30%.
Question 1: What is the bonus for the current year?
a. 126,000
b. 150,000
C. 165,000
d. 180,000
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