Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. aa, president of aa77 company, has a bonus arrange

AA, president of AA77 Company, has a bonus arrangement with the company under which he...

80.2K

Verified Solution

Question

Accounting

AA, president of AA77 Company, has a bonus arrangement with the company under which he receives 10% of profit (after taxes and bonuses) each year. For the current year, the profit before deducting either the provision for income taxes or the bonus is P4,000,000. The tax rate is 30%.

1. Determine the amount of bonus received by AA for the current year.

2. Compute the appropriate provision for income tax for the year

3. Assuming that the bonus amounted to 350,000 how much should be the company's profit?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

INSTRUCTIONS: Complete the statement in proper form. Revenuewill be provided in an announcement at...

Accounting
Q

Part A 6000 What type of joint is shown at the tip of the pointer...

Biology
Q

two gear combination shown The in the drawing is being used to lift the Load...

Physics
Q

Parallel plate capacitors with a plate sperati on of 1 cm stores 0 02 J...

Physics
Q

Suppose that voting in municipal elections is being studied and that the accompanying table describes...

Statistics
Q

1x 21 x 1

Statistics
Q

y = xe-2x, 0?x? In(3)On this interval, the maximum value(s) occur at x =In(3)two of...

Calculus
Q

3 The displacement in meters of a particle moving in a straight line is given...

Calculus
Q

Necsiding Petry Cast Fund truesactions decreses and cash euttioms as negetive ainounts. Bateace sheet bateace...

Accounting
Q

Your firm has beerrengased to examine the financial statements of Pina Corporation for the year...

Accounting
Q

Assuming that the bonds are reclassified Into financial asset at FVOCI, the initial entry on...

Accounting
Q

A local finance company quotes an interest rate of 17.1 percent on one-year loans. So,...

Finance