The Manager of Weiser Is Given a Bonus Based on Net

question 99

Multiple Choice

The manager of Weiser is given a bonus based on net income before taxes.The net income after taxes is $59,500 for FIFO and $49,000 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)$15,000
• B)$21,000
• C)$3,000
• D)$10,500

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Definitions:

Established Goal

An Established Goal is a clearly defined objective that an individual, group, or organization aims to achieve within a specific timeframe.

CEO

Chief Executive Officer; the highest-ranking executive in a company, responsible for making major corporate decisions and managing the overall operations and resources.

Internal Revenue Service

The United States governmental body in charge of collecting taxes and enforcing tax legislation.

Experimentation

The act of conducting tests or trials to explore effects of actions or to discover new information, often used in research, product development, and problem-solving.