Hello,

I need help with the analyzing and determining liability amounts. Please explain your answer and show calculations.

For this situation, indicate the liability amount, if any, that is reported on the balance sheet of Dillards at December 31, 2016.

d). Dillards provides a profit-sharing bonus for its executives equal to 5% of reported pretax annual income. The estimated pretax income for 2016 is $800,000. Bonuses are not paid until January of the following year.