For the Year Ended December 31,2013,Mason Company Has Implemented an Employee

question 72

Multiple Choice

For the year ended December 31,2013,Mason Company has implemented an employee bonus program equal to 7% of Mason's net income,which employees will share equally.Mason's net income (pre-bonus) is expected to be $3,500,000,and bonus expense is deducted in computing net income.What is the amount that needs to be recorded for estimated bonus liability for 2013?

• A)$245,000
• B)$144,118
• C)$228,972
• D)$50,000
• E)$125,000

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Definitions:

Anxiety Disorders

A cluster of psychological disorders marked by intense anxiety and fear, disrupting daily tasks.

Phobias

Irrational and excessive fears of specific objects, situations, or activities.

Amnesia

A condition characterized by memory loss, which can be partial or complete, temporary or permanent.

Compulsion

A psychological condition or mechanism where an individual feels the urgent need to perform certain behaviors or rituals repeatedly.