The sales manager of the Walbrook Company receives an annual bonus of 10% of net income after bonus and taxes. In 2015, Walbrook's income, before bonus and taxes, was $400,000. The effective tax rate is 30%.
Required:
a. Compute the sales manager's bonus and the income tax expense for the Walbrook Company.
b. Why does Walbrook compute the sales manager bonus after taxes and the bonus?

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The Answer of The sales manager of the Walbrook Company receives an annual bonus of 10% of net income after bonus and taxes. In 2015, Walbrook's income, before bonus and taxes, was $400,000. The effective tax rate is 30%.
Required:
a. Compute the sales manager's bonus and the income tax expense for the Walbrook Company.
b. Why does Walbrook compute the sales manager bonus after taxes and the bonus?

The Sales Manager of the Walbrook Company Receives an Annual