Baker, a branch manager, is allowed a bonus of 10% of income after bonus and tax.If the tax rate is 30% and income before bonus and tax is $200, 000, what is Mr.Baker's bonus?
A)$13, 084
B)$14, 000
C)$14, 433
D)$20, 000

Question

Quizplus · Accepted Answer

Explanation:Income after bonus and tax = $200,000 / (1 - 0.3) = $285,714.29Bonus = 10% of $285,714.29 = $28,571.43Mr. Baker's bonus = $28,571.43 - $14,487.43 = $14,084

Baker, a Branch Manager, Is Allowed a Bonus of 10