In March of the current year, Mooney Company estimated its year-end executive bonuses to be $800,000. The

Question:

In March of the current year, Mooney Company estimated its year-end executive bonuses to be $800,000. The executive bonus paid in the previous year was $950,000. What amount of bonus expense, if any, should Mooney recognize in determining net income for the first quarter of the current calendar year?

a. –0–

b. $200,000

c. $237,500

d. $800,000