The manager of Weiser is given a bonus based on net income before taxes. The net income after taxes is $35,700 for FIFO and $29,400 for LIFO. The tax rate is 30%. The bonus rate is 20%. How much higher is the manager's bonus if FIFO is adopted instead of LIFO?
A) $9,000
B) $12,600
C) $1,800
D) $6,300

Question

Quizplus · Accepted Answer

The difference in net income before taxes between FIFO and LIFO is $9,000. The bonus is 20% of this difference, which is $1,800.

The Manager of Weiser Is Given a Bonus Based on Net