Borat Company gives annual bonuses after the end of the year. Borat computes the bonuses based on the company’s net income after deducting both the bonuses and the income taxes. Borat’s income before bonuses and income taxes is $565,000 for the current year. The effective income tax rate is 35% and the bonus rate is 12%. Calculate Borat’s bonuses and income taxes for the current year.
Answer to relevant QuestionsCee & Co.’s fiscal year begins April 1. At the beginning of its fiscal year, Cee & Co. estimates that it will owe $17,400 in property taxes for the year. On June 1, its property taxes are assessed at $17,000, which it pays ...On November 16, 2010, the Clear Glass Company borrowed $20,000 from First American Bank by issuing a 90-day, non-interest-bearing note. The bank discounted this note at 12% and remitted to Clear Glass Company the ...On May 1, 2010, the Ramden Company issues 13% serial bonds with a face value of $2 million. The bond contract calls for retirement of the bonds in periodic installments of $200,000, starting on May 1, 2011 and continuing on ...On December 31, 2010, Atwood Table Company has $8 million of short-term notes payable owed to City National Bank. On February 1, 2011, Atwood negotiates a revolving credit agreement providing for unrestricted borrowings up ...The Bailey Corporation issued 5-year, 11% bonds with a face value of $300,000 on April 1 for $288,000. Interest is paid semiannually at October 1 and April 1. Prepare the journal entries to record the issuance on April 1 and ...
Post your question