The Manager of Stone Company Is Given a Bonus Based

question 12

Multiple Choice

The manager of Stone Company is given a bonus based on income before income taxes. Net income after taxes is $11500 for FIFO and $10100 for LIFO. The tax rate is 30%. The bonus rate is 15%. How much higher is the manager's bonus if FIFO is adopted instead of LIFO?

• A) $63
• B) $2100
• C) $300
• D) $420

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