For the Year Ended December 31,2013,Mason Company Has Implemented an Employee

Multiple Choice

For the year ended December 31,2013,Mason Company has implemented an employee bonus program equal to 7% of Mason's net income,which employees will share equally.Mason's net income (pre-bonus) is expected to be $3,500,000,and bonus expense is deducted in computing net income.What is the amount that needs to be recorded for estimated bonus liability for 2013?

A) $245,000
B) $144,118
C) $228,972
D) $50,000
E) $125,000