Bonus Obligation

Raymond Moss, vice president of Moss Auto Parts, gets an annual bonus of $14\%$ of any income, before deducting bonus and income taxes above $$100,000.$ Income before bonus and income taxes is $$325,000.$ The effective income tax rate is $30\%.$

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Bonus Obligation

This information has been collect answers in the questions below.

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Open spreadsheet

Required:

Compute the amount of Raymond Moss's bonus.

Compute the income tax expense.