Question
Dorothy, the manager of Sandhill Company is given a bonus based on net income before taxes. The net income is $54220 for FIFO and $45400
Dorothy, the manager of Sandhill Company is given a bonus based on net income before taxes. The net income is $54220 for FIFO and $45400 for LIFO. THe tax rate is 30%. The bonus rate is 20%. How much higher is the manager's bonus if FIFO is adopted instead of LIFO?
A, $8820
B. $17640
C. $2520
D. $12600
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Managerial accounting
Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin
1st edition
471467855, 978-0471467854
