DJ Inc. has a bonus plan covering all employees. The total bonus is equal to 10% of DJ’s preliminary (pre-bonus, pretax) income reduced by the income tax (computed on the preliminary income less the bonus itself). DJ’s preliminary income for 2011 is P1,000,000 and the income tax rate is 32%. How much is the bonus for 2011?
DJ Inc. has a bonus plan covering all employees. The total bonus is equal to 10% of DJ’s preliminary (pre-bonus, pretax) income reduced by the income tax (computed on the preliminary income less the bonus itself). DJ’s preliminary income for 2011 is P1,000,000 and the income tax rate is 32%. How much is the bonus for 2011?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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DJ Inc. has a bonus plan covering all employees. The total bonus is equal to 10% of DJ’s preliminary (pre-bonus, pretax) income reduced by the income tax (computed on the preliminary income less the bonus itself). DJ’s preliminary income for 2011 is P1,000,000 and the income tax rate is 32%.
How much is the bonus for 2011?
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