Jennifer, the manager of Pharoah Company is given a bonus based on net income before taxes. The net income is $51300 for FIFO and $42200 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? $9100 $18200 $2600 $13000

The sales manager is deciding between two possible compensation structures for sales staff. Under one plan, salespeople would receive a base compensation of $80,000 per year plus a 1% commission on all sales to their customers. Under the other plan, the base compensation would drop to $40,000 per year, but the commission rate would increase to 5%. What are the advantages and disadvantages, to the company of both plans? As the accounting manager, would you have a preference? Why or why not? (answer in text form please (without image), Note: .Every entry should have narration please)

Suppose two workers earn labor incomes of $20,000 per year in each of two tax accounting periods. One worker saves 20% of her labor earnings in the first period and spends all of her savings and accumulated interest in the final period. The other worker never saves any of her labor earnings. The market rate of interest is 10%.' a. Calculate the discounted present value of taxes paid over the two periods for each of the workers under a 15% comprehensive income tax. b. Calculate the discounted present value of taxes paid over the two periods under a comprehensive consumption tax. c. Comment on the equity and efficiency aspects of each of the two taxes.

A-1