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Georgy, Inc. has an incentive compensation plan under which the sales manager receives a bonus equal to 10 percent of the company's income before deductions

Georgy, Inc. has an incentive compensation plan under which the sales manager receives a bonus equal to 10 percent of the company's income before deductions for bonus but after deductions for income taxes. Income before bonus and income taxes is 400,000. The effective income tax rate is 30 percent. How much is the bonus (rounded to the nearest peso)? show the solution and explain.

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