Liabilities-pg 339-345

Question 1

Bonus Based on Operating Income after income taxes but before deducting bonus

Answer 1

B = .1(90000-T)
T=.4(90000-B)
B=.1(90000-.4(90000-B))

Question 2

Bonus Based on Operating Income after income taxes and Bonus

Answer 2

B=.1(90000-T-B)
T=.4(90000-B)
B=.1(90000-.4(90000-B)-B)