Jax Company provides an incentive compensation plan under which its president received a bonus equal to 10% of the corporation’s income before income tax but after deduction of the bonus. If the tax rate is 35% and net income after bonus and income tax was P2,600,000, what was the amount of the bonus? Group of answer choices 200,000 400,000 440,000 260,000

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 10PA: Lemur Corp. is going to pay three employees a year-end bonus. The amount of the year-end bonus and...
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Jax Company provides an incentive compensation plan under which its president received a bonus equal to 10% of the corporation’s income before income tax but after deduction of the bonus. If the tax rate is 35% and net income after bonus and income tax was P2,600,000, what was the amount of the bonus?
Group of answer choices
200,000
400,000
440,000
260,000
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