Valix Finacc vol 2 Problem 1-48

Financial Accounting Volume 2 2008 Valix-Peralta
Chapter 1 Problem 1-48

Problem 1-48  Answer  B

                          B  =  .05 (5,000,000 – B – T)

                          T   =  .35 (5,000,000 – B)

                          B  =  .05 [5,000,000 – B - .35 (5,000,000 – B)]

                          B  =  .05 (5,000,000 – B - 1,750,000 + .35B)

                          B  =  250,000 – .05B - 87,500 + .0175B

B + .05B - .0175B  =  250,000 – 87,500

               1.0325B  =  162,500

                          B  =  162,500 / 1.0325

                          B  =  157,385

                          T  =  .35 (5,000,000 – 157,385)

                          T  =  1,694,915

Proof of bonus

                         B  =  .05 (5,000,000 – 157,385 – 1,694,915)

                         B  =  157,385