Multiple Choice
The manager of Yates Company is given a bonus based on income before income taxes. Net income, after taxes, is $10,500 for FIFO and $9,450 for average-cost. The tax rate is 30%. The bonus rate is 20%. How much higher is the manager's bonus if FIFO is adopted instead of average-cost?
A) $375
B) $563
C) $300
D) $1,050
Correct Answer:
Verified
Correct Answer:
Verified
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