Business, 31.12.2019 01:31 iamcuriousdelip08rmf

Raymond moss, vice president of moss auto parts, gets an annual bonus of 15% of any income, before deducting bonus and income taxes, above $100,000. income before bonus and income taxes is $250,000. the effective income tax rate is 30%.

required:

1. compute the amount of raymond moss's bonus. bonus = $

2. compute the income tax expense. income tax expense = $

answer the 2nd question correctly. the answer posted is wrong.

Answers: 2

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Answers

Answer from: Haddixhouse5273

1. Raymond Moss's Bonus = 15% x $250,000 = $37,500

2. Income tax expense = $100,000 - $37,500 = $62,500

Explanation:

In this case, there is need to calculate bonus of 15% of gross income, which is 15% x $250,000 = $37,500. Then, we will deduct the $37,500 from the total of bonus and income tax of $100,000. This gives the amount of income tax expense.

Answer from: Quest

How can we answer it? we need more info on the question lol.

Answer from: Quest

Someone who needs financial planning.

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Raymond moss, vice president of moss auto parts, gets an annual bonus of 15% of any income, before d...