The Manager of Yates Company Is Given a Bonus Based

question 235

Multiple Choice

The manager of Yates Company is given a bonus based on income before income taxes. Net income, after taxes, is $10,500 for FIFO and $9,450 for average-cost. The tax rate is 30%. The bonus rate is 20%. How much higher is the manager's bonus if FIFO is adopted instead of average-cost?

• A) $375
• B) $563
• C) $300
• D) $1,050

---

Definitions:

Embryonic Period

The stage in prenatal development that spans from conception to the eighth week, during which major organs and structures begin to form in the embryo.

Neural Tube

The precursor to the central nervous system in embryonic development, which later develops into the brain and spinal cord.

Spinal Cord

A long, thin, tubular bundle of nervous tissue and support cells that extends from the brainstem to the lumbar region, facilitating communication between the brain and the body.

Genetic Counseling

Consultation and testing by trained experts that enable individuals to learn about their genetic heritage, including harmful conditions that they might pass along to any children they may conceive.