Question: James Kimberley president of National Motors receives a bonus of
James Kimberley, president of National Motors, receives a bonus of 10% of National's profits above $1,500,000, before the bonus and the corporation's income taxes are deducted. National's effective income tax rate is 30%. Profits before income taxes and his bonus arc $5,000,000 for 2016.
Answer to relevant QuestionsAdjust Corporation (which is on a December 31 fiscal year end) engaged in the following transactions during 2016 and 2017: 2016 Nov. 1 Issued a 120day, 12% note, face value of $20,000, to John son Company to settle an open ...Multiple choice questions 1. Hickory Company made a lump- sum purchase of three pieces of machinery for $ 130,000 from an unaffiliated company. At the time of acquisition, Hickory paid $ 5,000 to determine the appraised ...Refer to RE10- 8. In Year 1, Dexter incurred costs as follows: January 1............ $ 300,000 March 1............ 600,000 June 30........... 1,000,000 November.......... 1 480,000 Calculate Dexter’s weighted average ...Carr Company must determine whether the following items are included in property, plant, and equipment: a. contract price b. list price c. freight costs d. discounts taken e. discounts not taken f. installation costs g. ...Alta Company is constructing a production complex that for interest capitalization. The following information is available: • Capitalization period: January 1, 2016, to June 30, 2017 • Expenditures on ...
Post your question