On March 2, 2017, Knight Company's CFO, Bob Martin, will receive a bonus equal to 6% of income before income taxes as reported for the year ended December 31, 2016. The current 2016 income statement shows income before income taxes as $600,000.
Required:
(1) What journal entry should be made on December 31, 2016?
(2) What journal entry should be made on March 2, 2017?
(3) If Bob decides to postpone $50,000 of 2016 research and development expenditures until 2017, what impact would this have on his bonus? Explain and show your calculations.

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The Answer of On March 2, 2017, Knight Company's CFO, Bob Martin, will receive a bonus equal to 6% of income before income taxes as reported for the year ended December 31, 2016. The current 2016 income statement shows income before income taxes as $600,000.
Required:
(1) What journal entry should be made on December 31, 2016?
(2) What journal entry should be made on March 2, 2017?
(3) If Bob decides to postpone $50,000 of 2016 research and development expenditures until 2017, what impact would this have on his bonus? Explain and show your calculations.

On March 2, 2017, Knight Company's CFO, Bob Martin, Will