A technology company offers a bonus plan to its employees equal to 3% of net income...
A technology company offers a bonus plan to its employees equal to 3% of net income computed after deduction of the bonus. The company’s net income is expected to be $960,000in the current year. The amount recorded by the company as employee bonus payable in the current year will be:
a) $29,000
b) $27,961
c) $28,800
d) $29,691
Homework Answers
b) $27,961
As per the question,Bonus is 3% of net income computed after
deduction of Bonus. So that means net income after deduction of
Bonus will be 100% and before deduction of bonus will be 103%. 3%
is Bonus Part.
Please let me know if you have any further doubts.
Net Income before deduction of Bonus 103%
Bonus 3%
Net Income after Bonus 100%
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A technology company offers a bonus plan to its employees equal
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