Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Sometimes compensation packages include bonuses designed to provide performance incentives to employees. The difficulty a bonus can cause accountants is not an accounting problem, but a math problem. The complication is that the bonus formula sometimes specifies that the calculation of the bonus is based in part on the bonus itself. This occurs anytime the bonus is a percentage of income because expenses are components of income, and the bonus is an expense.Regalia Fashions has an incentive compensation plan through which a division manager receives a bonus equal to 10% of the division's net income. Division income in 2011 before the bonus and income tax was $150,000. The tax rate is 30%.
Required:
1. Express the bonus formula as one or more algebraic equation(s).
2. Using these formulas calculate the amount of the bonus.
3. Prepare the adjusting entry to record the bonus compensation.
4. Bonus arrangements take many forms. Suppose the bonus specifies that the bonus is 10% of the division's income before tax, but after the bonus itself. Calculate the amount of the bonus.
Kevin and Nicole form Indigo Corporation with the following transfers: inventory from Kevin (basis of $360,000 and fair market value of $400,000) and improved real estate from Nicole (basis of $320,000 and fair market value of $375,000). Nicole, a..
which of the following is not true of the decision packages used in zero-base budgeting? decision packages should
What are the tax consequences of these transactions for Barney and Wilma?
Classic Ions, nc. purchased manufacturing equipment with an expected useful life of five years or 5,000 hours of usage. The equipment was purchased on Janruary 1, 2008, for $460,000.
match each term with the correct definition.a.contingencyb.discountc.premiumd.capital leasee.stated ratef.effective
company borrowed 10000 on a 5 year 9 percent installment note with quarterly payments of 626.42. how much of the first
Warner Motors' stock is trading at $20 a share. Call options that expire in three months with a strike price of $20 sell for $1.50. Which of the following will occur if the stock price increases 10%, to $22 a share?
On January 1, 2010, Jones Company acquires a 30% interest in Fink Company by purchasing 3,000 of its 10,000 common shares for $16 per share and obtains significant influence. On the date of acquisition, the net assets of Fink Company were as shown he..
If the discount rate is 12%, should the grill be purchased? What are the operating cash flows in years 1 to 3?
the master budget of carpenter co. shows that the planned activity level for next year is expected to be 100000 machine
the american institute of certified public accountants aicpa and the institute of internal auditors iia have positioned
wayne cos production plan for 5000 units of production provided for 25000 of direct labor 35000 of direct materials and
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd