A, B and C share profits and losses in the ratio of 3:2:1. C is to receive a salary of K30, 000 as managing partner, and interest at the rate of 15% p. a is to be charged on drawings. Further, Interest to be earned by partners on their capital contributed. The following are the results of the profits and losses appropriated for the current year. Net profit K200, 0000 Salary K30, 000 Interest on drawings A K10, 000 B K8, 000 C K7, 000 Interests on capital A K20, 000 B K15, 000 C K15, 000 You are required to calculated the partners share of taxable income for tax purposes.
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- Requirement: For each of the following independent income-sharing agreements, prepare an income distribution schedule. 1. Monthly salaries are P30,000 to AB, P50,000 to QR and P45,000 to XY AB receives a bonus of 5% of net income after deducting his bonus Interest is 12% of ending capital balances. Any remainder is divided by AB, QR and XY in a 25:40:35 ratio. The Income Summary account has a credit balance of P2,835,000 before closing. 2. Interest is 10% of weighted average capital balances. Annual salaries are P480,000 to AB, P630,000 to QR and P510,000 to XY. QR receives a bonus of 25% of net income after deducting the bonus and his salary, Any remainder is divided in a 2:3:4 ratio by AB, QR and XY, respectively. Net income was P1,050,000 before any allocations. 3. XY receives a bonus of 20% of net income after deducting the bonus and the salaries. Annual salaries are P600,000 to AB, P540,000 to QR and P750,000 to XY. Interest is 15% of the ending capital in excess of P140,000.…JIMIN Company has an agreement to pay the executive officers a bonus of 5% of the entity’s earnings. Theincome for the year before bonus and tax is ₱8,750,000. The income tax rate is 30% of income after bonus. 1. Bonus is based on income before bonus and before tax.2. Bonus is based on income after bonus and after tax.Maryland company offers a bonus plan to its employees equal to 3% of net income. Maryland's net income is expected to be $960,000. The amount of the employee's bonus expense is estimated to be? A. $27,961B. $28,800C. $29,000D. $29,691E. $30,000
- Natural Company has an agreement to pay the sales manager a bonus of 10% of the entity's earnings. The income for the year before bonus and tax is P5,250,000. The income tax rate is 25%. 1. Compute the bonus after bonus and taxes.2. Compute the bonus after tax but before bonus.Problem 4: JIMIN Company has an agreement to pay the executive officers a bonus of 5% of the entity's earnings. The income for the year before bonus and tax is P8,750,000. The income tax rate is 30% of income after bonus. Requirements: Determine the BONUS under each of the following independent assumptions: 9. A. Bonus is based on income before bonus and before tax. В. Bonus is based on income after bonus and after tax. C. Bonus is based on income after bonus but before tax. D. Bonus is based on income after tax but before bonusProblem 4: JIMIN Company has an agreement to pay the executive officers a bonus of 5% of the entity's earnings. The income for the year before bonus and tax is P8,750,000. The income tax rate is 30% of income after bonus. Requirements: Determine the BONUS under each of the following independent assumptions: А. 9. Bonus is based on income before bonus and before tax. В. Bonus is based on income after bonus and after tax. С. Bonus is based on income after bonus but before tax. D. Bonus is based on income after tax but before bonus
- A Manager of MUUG Corporation received the following remunerations: Gross salaries, net of SSS, PHIC and HDMF sss maternity benefits P1,140,000 P20,000 Profit sharing bonus 13th month pay P155,000 P100,000 Compute the taxable compensation income.Nature Company has an agreement to pay each sales manager a bonus of 5% of the entity's earnings and each sales personnel 2%. Nature has two sales manager and two sales personnel. The income for the year before bonus and tax is P5,000,000. THe income tax rate is 30% of income after bonus. The bonus is based on net income after bonus and after tax. How much is the total bonus of both sales personnel? (round the final answer to the nearest whole number)Nature Company has an agreement to pay each sales manager a bonus of 5% of the entity's earnings and each sales personnel 2%. Nature has one sales manager and two sales personnel. The income for the year before bonus and tax is P5,250,000. The income tax rate is 30% of income after bonus. The bonus is based on net income before bonus but after tax. How much is the bonus of each sales personnel? (round the final answer to the nearest whole number)
- Use the information for the next four (4) questions. XYZ Company has an agreement to pay the sales manager a bonus of 5% of the entity's earnings. The income for the year before bonus and tax is P7,875,000 The income tax rate is 30% of income after bonus.How much is the bonus, assuming bonus is a certain percent of the income before bonus and before tax? How much is the bonus, assuming bonus is a certain percent of income after bonus but before tax? How much is the bonus, assuming bonus is a certain percent of income after bonus and after tax? How much is the bonus, assuming bonus is a certain percent of income after tax but before bonus?1. Darna, employed, derived the following income during the year: P 400,000 40,000 20,000 50,000 Gross Salaries 13 Month pay and other benefits SSS, PhilHealth and Pag-Ibig Contributions Deductions for loans repayments Deductions for withholding tax 60,000 Compute the compensation income to be reported in the annual income tax return.Required: For each of the following independent income-sharing agreements, prepare anincome distribution schedule.a. Salaries are P15,000 to East, P20,000 to North, and P18,000 to West. East receives abonus of 5 percent of net income after deducting his bonus. Interest is 10 percent of endingcapital balances. Any remainder is divided by East, North, and West in a 3:3:4 ratio. Netincome was P78,960.b. Interest is 10 percent of weighted average capital balances. Salaries are P24,000to East, P21,000 to North, and P25,000 to West. North receives a bonus of 10 percent of netincome after deducting the bonus and his salary. Any remainder is divided equally. Net incomewas P68,080.c. West receives a bonus of 20 percent of net income after deducting the bonus and thesalaries. Salaries are P21,000 to East, P18,000 to North, and P15,000 to West. Interest is 10percent of beginning capital balances. Any remainder is divided by East, North, and West inan 8:7:5 ratio. Net income was P92,940.