Royal Clothes Has Performed Admirably for the Financial Year 2014

question 162

Multiple Choice

Royal Clothes has performed admirably for the financial year 2014. It decides to reward its employees with a bonus of 15% on annual net income, after deducting the bonus. The net income before allowing bonuses is $300,000. Calculate the bonus allowable to the employees.

• A)$45,000
• B)$39,130
• C)$52,941
• D)$6,750

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Definitions:

Complete

To finish all parts of a task or duty fully and to satisfaction.

Contract Condition

A provision in a contract that specifies a requirement or event that must occur or be met for the contract or a part of it to be fulfilled or enforced.

Discharged

In legal terms, refers to the completion or termination of an obligation, such as a debt or duty, often resulting in release from responsibility.

Discharge a Contract

The termination of a contractual obligation, either through fulfillment of the contract terms, mutual agreement, or other legal means.