Income before bonus and income taxes is 400000. the, Ask an Expert

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Wright inc has an incentive compensation plan under which the sales manager receives a bonus equal to 10% of the companies income after deductions for bonus and income taxes. Income before bonus and income taxes is $400,000. The effective tax rate is 30%. How much is the bonus(rounded to the nearest dollar).

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M9434196

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