Interim Reporting 10 Points 3 Using the information below, recognize the appropriate amount of bonus expense that should be recognized for 20. Bonus Terms Bonus compensation expense Annual Net Income required for bonus to be paid (threshold) 2,000 10,000 1Q 20 3Q 4Q Annual Bonus Actual Bonus Expense Actual Net Income Budget Net Income Forecast update to budget 500 2,000 3,000 2,000 2,400 2,400 2,400 2,600 3,600 2,000 2,000 500 4,400 10,000 10,000 2Q= Using the information below, recognize the appropriate amount of income tax expense that should be recognized for 20. Effective Tax Rates 2Q Actual Effective Tax Rate Annual Projection 30% 40% 20 3Q 40 1Q 750 Annual 750 Actual Tax Expense Earnings Before Taxes Actual 20 = 2,000 2,000 4,000