Amazing Company enjoys a profitable operation for its past ten years of existence. The company president proposed to the
Posted: Sun Jun 05, 2022 5:24 pm
Amazing Company enjoys a profitable operation for its past ten
years of existence. The company president proposed to the Board of
Directors an incentive compensation plan where the general managers
would be entitled to a year-end bonus, to be paid on January 15 of
the following year, under the following schemes based on their
department performance:
The company’s profit before bonus and income tax for the year ended
December 31, 2021 is P8,000,000. The income tax rate is 25%.
How much is the total liability related to the above transactions
to be reported on December 31, 2021?
years of existence. The company president proposed to the Board of
Directors an incentive compensation plan where the general managers
would be entitled to a year-end bonus, to be paid on January 15 of
the following year, under the following schemes based on their
department performance:
The company’s profit before bonus and income tax for the year ended
December 31, 2021 is P8,000,000. The income tax rate is 25%.
How much is the total liability related to the above transactions
to be reported on December 31, 2021?