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To provide an incentive for good managerial decisions, Padres Co pays an annual bonus (which is tax deductible) to its manager. If the company has
To provide an incentive for good managerial decisions, Padres Co pays an annual bonus (which is tax deductible) to its manager. If the company has an EXCELLENT season (wins 100 or more games), the bonus is computed as 30% of [the amount of income before the bonus but after deducting the tax]. However, if the company has an Average season (wins 8299 games), the manager receives a bonus equal to 10% of [the amount that net income exceeds $2,000,000 ]. Income before both the bonus and tax was $7,500,000FYE12/31/23. The appropriate tax rate is 20%. ** REQUIRED: 1) Determine, rounded to the nearest dollar, the amount of: a) the 12/31/23 annual bonus if an EXCELLENT season occurs. b) tax expense FYE 12/31/23 if an EXCELLENT season occurs. c) the 12/31/23 annual bonus if an Average season occurs. d) net income reported FYE 12/31/23 if an Average season occurs
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