Question: please provide answer as soon as possible see attached See Bonus Obligation and Income Tax Expense.doc x Bonus Obligation and Income Tax Expense James Kimberley,

please provide answer as soon as possible see attached

See Bonus Obligation and Income Tax Expense.docx

Bonus Obligation and Income Tax Expense 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 are $5,000,000 for 2013. Required: 1. Compute the amount of Kimberley's bonus for 2013. $ 2. Compute National Motors' income tax expense for 2013. $ 3. . Prepare journal entries at the end of 2013 to record the bonus and income taxes. 4. Show how the bonus and income taxes would be reported on National Motors' December 31, 2013, balance sheet. NATIONAL MOTORS Partial Balance Sheet December 31, 2013 Current Liabilities $

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