Guanzon is the managing partner of VG Partnership.  He is given an incentive of 7% of bonus on profit. The Profit of the partnership is P650,300 net of income tax rate of 30%.  Determine the amount of bonus under each of the following assumptions:

Bonus is computed based on profit before deduction for bonus and income tax

Bonus is computed based on profit after deduction for bonus but before deduction for income tax.

Required to answer:

Bonus is computed based on profit before deduction for bonus but after deduction for income tax .

Bonus is computed based on profit after deduction for bonus and income tax.