Ditto Corp.'s income statement accounts at 12/31, adjusted for all items except bonus and income taxes...
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Ditto Corp.'s income statement accounts at 12/31, adjusted for all items except bonus and income taxes is given below. SALES COST OF GOODS SOLD OPERATING EXPENSES SALARIES DEPRECIATION OFFICE EXP MISC. EXP 1. Income before bonus and tax is DR. 700,000 200,000 50,000 60,000 40,000 CR. 1,300,000 2. Calculate the amount of bonus and tax under each of the following independent assumptions (The income tax rale is 40%): a. The bonus is equal to 10% of income before bonus and tax b. The bonus is equal to 10% of income after bonus, but before tax c. The bonus is equal to 10% of income before bonus, but after tax Ditto Corp.'s income statement accounts at 12/31, adjusted for all items except bonus and income taxes is given below. SALES COST OF GOODS SOLD OPERATING EXPENSES SALARIES DEPRECIATION OFFICE EXP MISC. EXP 1. Income before bonus and tax is DR. 700,000 200,000 50,000 60,000 40,000 CR. 1,300,000 2. Calculate the amount of bonus and tax under each of the following independent assumptions (The income tax rale is 40%): a. The bonus is equal to 10% of income before bonus and tax b. The bonus is equal to 10% of income after bonus, but before tax c. The bonus is equal to 10% of income before bonus, but after tax
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1 Income before bonus and tax Sales 1300000 Cost of Goods Sold 700000 Operating Expenses Salaries 20... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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