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Raymond Moss, vice president of Moss Auto Parts, gets an annual bonus of 14% of any income, before deducting bonus and income taxes, above $100,000.
Raymond Moss, vice president of Moss Auto Parts, gets an annual bonus of 14% of any income, before deducting bonus and income taxes, above $100,000. Income before bonus and income taxes is $297,000. The effective income tax rate is 30%.
Required:
1. Compute the amount of Raymond Moss's bonus.
Bonus $
2. Compute the income tax expense.
Income tax expense $
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