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Arthur Corporation pays bonuses to its sales manager and two sales agents. The company had profit for 2024 of P3,000,000 before bonuses and income
Arthur Corporation pays bonuses to its sales manager and two sales agents. The company had profit for 2024 of P3,000,000 before bonuses and income taxes. Assume - a. The sales manager gets 8% and each sales agent gets 6% of profit before tax and bonuses. b. C. Each bonus is 12% of profit after income tax and bonuses. Sales manager gets 12% and each sales agent gets 10% of profit after bonuses but before income tax. REQUIRED: Determine the amount of the bonus for the sales manager and for each sales agent under the given independent assumptions. Assume a tax rate of 25%. Cleveland, Inc. pays its general manager an annual bonus of 6% of profit after deduction for both bonus and corporate income tax. For 2024, the company realized a profit of P9,000,000 before said deductions. The income tax rate is 25%. REQUIRED: What is the corporate income tax liability on December 31, 2024?
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