Question: The CEO's compensation contract includes a provision for a bonus of 15% of income before the bonus but after income taxes (30% rate). Income before

The CEO's compensation contract includes a provision for a bonus of 15% of income before the bonus but after income taxes (30% rate). Income before bonus and income tax is $1.2 million for the current year. The bonus is computed and paid at year-end to obtain the tax deduction for the bonus in the current year. Prepare the journal entry to record the bonus only.

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