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

Essay

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.