Incentive compensation plan


Wright inc has an incentive compensation plan under which the sales manager receives a bonus equal to 10% of the companies income after deductions for bonus and income taxes. Income before bonus and income taxes is $400,000. The effective tax rate is 30%. How much is the bonus(rounded to the nearest dollar).

A 40,000

B 30,108

C 28,000

D 26,168

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Incentive compensation plan
Reference No:- TGS071935

Expected delivery within 24 Hours