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Ronald Company has an incentive compensation plan under which a branch manager
received 10% of the branch income after deduction of the bonus but before deduction of
income tax.
Branch income for the current year before the bonus and income tax was P1,650,000. The
tax rate was 30%.
What is the bonus for the current year?
a. 126,000 b. 150,000 c. 165,000 d. 180,000
Christian Company has a bonus agreement which provides that the general manager shall
receive an annual bonus of 10% of the net income after bonus and tax. The income tax
rate is 30%. The general manager received P280,000 for the current year as bonus.