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Dennis and Joy established Victory Partnership investing P500.000 each on Nov. 9, 2019. Part of their profit distribution is a bonus of 15% to
Dennis and Joy established Victory Partnership investing P500.000 each on Nov. 9, 2019. Part of their profit distribution is a bonus of 15% to Dennis, the managing partner. Calculate the amount of bonus under each of the following independent assumption assuming the net income for the year ended December 31, 2019 is P300,000: (assume 30% tax rate). Show all computations in good form. a. Bonus is based on profit before deducting bonus and income tax. b. Bonus is based on profit after deducting bonus but before deducting income tax. c. Bonus is based on profit before deducting bonus after deducting income tax. d. Bonus is based on profit after deducting bonus and income tax. i. If bonus is not treated as expense ii. If bonus is treated as expense
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ANSWER a Bonus is based on profit before deducting bonus and income tax Net income for the year ended December 31 2019 P300000 Total capital contribut...Get Instant Access to Expert-Tailored Solutions
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