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Amazon Corp income statement accounts at 12/31, adjusted for all items except bonus and income taxes is given below DR CR. Sales 1,300,000 Cost of
Amazon Corp income statement accounts at 12/31, adjusted for all items except bonus and income taxes is given below
DR CR.
Sales 1,300,000
Cost of Goods sold 700,000
Operating Expense
Salaries 200,000
Depreciation 50,000
Office EXP 60,000
MISC EXP 40,000
- Income before bonus and tax is:
- Calculate the amount of bonus and tax under each of the following independent assumptions (the income tax rate is 40%)
- The bonus is equal to 10% of income before bonus and tax
- The bonus is equal to 10% of income after bonus but before tax
- The bonus is equal to 10% of income before bonus but after tax
- The bonus is equal to 10% of income after both bonus and tax
For each of the four independent cases described in part 1,
- make the entries required at 12/31 to adjust salary expense and to record income tax expense.
- construct an income statement at 12/31.
Please show work and how you found the answer, thank you
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