7 To provide an incentive for good managerial decisions, Padres Co pays an annual bonus (which is tax deductible) to its manager. If the company has an EXCELLENT season (wins 100or more games), the bonus is computed as 30% of [the amount of income before the bonus but after deducting the tax]. However, if the company has an Average season (wins 82-99games), the manager receives a bonus equal to 10% of [the amount that net income exceeds $2,000,000]. Income before both the bonus and tax was $7,500,000 FYE 12/31/23. Theappropriate tax rate is 20%.*** REQUIRED:1) Determine, rounded to the nearest dollar, the amount of:a) the 12/31/23 annual bonus if an EXCELLENT season occurs.b) tax expense FYE 12/31/23 if an EXCELLENT season occurs.c) the 12/31/23 annual bonus if an Average season occurs.d) net income reported FYE 12/31/23 if an Average season occurs.

Bonuses are paid to employees of a company in many a cases as part of their variable pay. As bonus…

Answered: To provide an incentive for good…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

The manager of Pharoah is given a bonus based on net income before taxes. The net income after taxes is $75980 for FIFO and $64500 for LIFO. The tax rate is 30%. The bonus rate is 20%. How much higher is the manager's bonus if FIFO is adopted instead of LIFO?
James 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 1,650,000. The tax rate is 30%. What is the bonus for the current year?
This Company grants its managerial employees bonus in the form of profit sharing. Information on operations in 2021 is shown below: Profit before tax - P4,000,000 Bonus rate or percentage - 10% Income tax rate - 30% How much is the bonus if the bonus scheme is "after bonus but before tax?"
PP Company has an incentive compensation plan under which a branch manager receives 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%. What is the bonus for the current year?
1.ABC Company has an incentive compensation plan that pays its president a bonus equal to 10% of the company's income in excess of P600,000 before income tax but after deduction of the bonus. If income before income tax and bonus is P1,920,000 and the tax rate is 32%, the amount of the bonus would be 2.ABC Company has an agreement to pay its sales manager a bonus of 5% of the income after bonus and after tax. The income for the current year before bonus and tax is P5,250,000. The income tax rate is 30% of income after bonus. What amount should be reported as bonus of the sales manager for the current year?
SESAME-SEED Company has a bonus agreement that provides that the senior managers will receive an annual bonus of 12% of the net income after bonus and tax. The income tax rate is 30%. The senior managers received ₱250,000 for the current year as a bonus. What is the net income before bonus and tax? ANSWER IN GOOD ACCOUNTING FORM. THANK YOU :)
Love Company has an incentive compensation plan under which a branch manager received 10% of the branch’s income afterdeduction of the bonus and tax. Branch income for the year before the bonus and income tax was P3,300,000. Tax rate is 30%.What is the amount of bonus for the current year?
Tigers Co likes to award its manager with bonuses based on the company's performance. The following describes the various bonus plans, tax rates, and the amount of "Income Before the Bonus and Tax" (IBBT): Bonus determination Tax rate 40% 25% 20% 10% Plan A B с D IBBT $4,620,000 $2,280,000 $3,660,000 $1,290,000 REQUIREMENTS: Assuming that the bonus is tax-deductible in each case, determine the following amounts for each bonus plan: 1. Bonus 2. Tax 3. Net Income Bonus equals 10% of the amount of (income after the bonus, but before the tax) Bonus equals 20% of the amount of (income before the bonus, but after the tax) Bonus equals 25% of the amount of ("Net Income") Bonus equals 40% of the amount that ("Net Income" exceeds $600,000)
This Company provides an incentive compensation plan under which its president receives a bonus equal to 10% of This Company's profit before tax but after deduction of the bonus. This Company's profit after tax and after bonus for the year is P2,545,456. Income tax rate is 30%. How much is the bonus?
At ABC Co., 10% of each salesperson's yearly bonus is based on whether or not the entire company reaches its annual sales goals. ABC's compensation structure is based on the fundamental idea that ______. A) compensation policies must be legal B) incentives will be more effective if it encourages people to act in ways that benefit both society and the person C) people will work to accomplish a goal if they have a real stake in the reaching the goal D) incentive structures should be as simple as possible E) People are more likely to adhere to a policy if they have had some input into the development of the policy
The ABC Company enjoys profitable operations for its past ten years of existence. The company president proposed to the Board of Directors an incentive compensation plan where the general manager would be entitled to a year-end bonus under the following alternative schemes: Alternative 1: 8% bonus based on profit before bonus and income tax in excess of P 5,000,000. Alternative 2: 5% bonus based on profit after both bonus and income tax. Alternative 3: 3% bonus based on profit after bonus but before income tax. ABC Company's profit before bonus and income tax for the year ended December 31, 2019 is P 8,000,000. Assume an income tax rate of 30%. How much is the general manager's bonus for 2019 under Alternative 2?
ABC Quezon Avenue, Inc. is a dealer of trucks and automobiles. ABC distributes annual bonuses to its Vice president for Sales department and three division managers, namely: truck divison, SUV division, and AUV and Sedan Division. The company reported P 12,000,000 profit for year 2019 before bonuses and income tax. Income tax rate is 30%. How much is the total bonus expense that should be recognized for the vice president and each division manager, if the vice president gets 3% and each division manager gets 1%of profit after bonuses before income taxes? A. P 679,246 B. P 169,811 C. P 765,956 D. P 339,623

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