The Manager of Brick Company Is Given a Bonus Based

question 195

Multiple Choice

The manager of Brick Company is given a bonus based on income before income taxes. Net income, after taxes, is $11,200 for FIFO and $9,800 for LIFO. The tax rate is 30%. The bonus rate is 20%. How much higher is the manager's bonus if FIFO is adopted instead of LIFO?

• A) $84
• B) $2,800
• C) $400
• D) $420

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Definitions:

Cerebral Peduncles

Structures at the base of the brain, containing fibers that connect the cerebrum with other parts of the brain and the spinal cord.

Red Nucleus

A structure in the midbrain involved in motor coordination and bodily movement.

Red Nuclei

Midbrain structures involved in motor coordination, notably part of the pathway for voluntary movements.

Auditory Pathways

The neural pathways that carry auditory information from the ears to the brain for processing and interpretation.