taytaycola223
19.02.2020 •
Business
Able Co. provides an incentive compensation plan under which its president receives a bonus equal to 10% of the corporation’s income before income tax but after deduction of the bonus.
If the tax rate is 40% and net income after bonus and income tax was $360,000, what was the amount of the bonus?
A. $36,000
B. $60,000
C. $66,000
D. $90,000
Solved
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Ответ:
correct option is B. $60,000
Explanation:
given data
net income = $360,000
tax rate = 40%
bonus = 10%
solution
first we get here pre tax income
we know after tax income is $360,000
so Pre-tax income will be = $360,000 ÷ ( 1- tax rate ) .........1
Pre-tax income =
Pre-tax income = $60000
now we get Bonus that is
Bonus = Pre tax income × 10%
Bonus = $60000 × 10%
Bonus = $60000
so correct option is B. $60,000
Ответ:
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