Question: RE 2 2 - 6 LO 2 2 . 2 Suppose that Blake Company's total pretax difference from a change to FIFO was 5 1

22 - 6

22.2

Suppose that Blake Company's total pretax difference from a change to FIFO was

5100, 000

and the company pays a bonus of

5 %

of its income betore income taxes and bonus to employees. If BLake pays an additional honus based on the change in income, would it recognize any expense? If so

,

when and how much?

RE 2 2 - 6 LO 2 2 . 2 Suppose that Blake

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