Ana Rosa, president of the Apoka Company, has a bonus arrangement with the company under which she receives 10% of the net income after deducting taxes and bonuses each year. For the current year, the net income before deducting either the provision for income taxes or the bonus is P4,650,000. The bonus is deductible for tax purposes, and the tax rate is 30%. 1. Compute the appropriate provision for income tax for the year. 2. Determine the amount of Ana Rosa’s bonus.
Ana Rosa, president of the Apoka Company, has a bonus arrangement with the company under which she receives 10% of the net income after deducting taxes and bonuses each year. For the current year, the net income before deducting either the provision for income taxes or the bonus is P4,650,000. The bonus is deductible for tax purposes, and the tax rate is 30%. 1. Compute the appropriate provision for income tax for the year. 2. Determine the amount of Ana Rosa’s bonus.
Chapter12: Alternative Minimum Tax
Section: Chapter Questions
Problem 30P: Lisa records nonrefundable Federal income tax credits of 65,000 for the year. Her regular income tax...
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Ana Rosa, president of the Apoka Company, has a bonus arrangement with the company under which she receives 10% of the net income after deducting taxes and bonuses each year. For the current year, the net income before deducting either the provision for income taxes or the bonus is P4,650,000. The bonus is deductible for tax purposes, and the tax rate is 30%.
1. Compute the appropriate provision for income tax for the year.
2. Determine the amount of Ana Rosa’s bonus.
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