If an Employer Offers a Bonus to Its Employees Equal

question 92

Multiple Choice

If an employer offers a bonus to its employees equal to 5% of the company's annual net income, and the expected annual pre-bonus net income is $320,000, what bonus amount should be used in the year-end adjusting entry to record this benefit (rounded to the nearest whole dollar) ?

• A)$16,800.
• B)$16,000.
• C)$15,238.
• D)$15,200.
• E)$14.476.

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Definitions:

Inflation

The velocity at which the universal price point for goods and services escalates, reducing the ability to make purchases.

Frictionally Unemployed

Individuals who are temporarily out of work while transitioning from one job to another.

Skills

The abilities and expertise that individuals acquire through training or experience that enhance their capacity to perform tasks effectively.

Construction Workers

Skilled and unskilled workers involved in the physical construction of infrastructure, buildings, and other real estate projects.