14:44 the answer was actually the 91,071 - which represents the accrual for the CEO (which is 0.15 x the amount before tax but after the bonus itself) - the calculation here goes one step further to solve for the bonus that everyone else got BEFORE the CEO (who again- gets a whole 15% after that number) - while not what the question asked for- still good to know how to do. Just providing this for clarity: $125: income before Tax/Bonus -25: Bonus for others (solved) 100: income b4 tax/after bonus. x.15: $15 accrual for CEO (actual answer) x.30: apply tax rate, etc. to get to Net Income.
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Omg I needed this today
14:44 the answer was actually the 91,071 - which represents the accrual for the CEO (which is 0.15 x the amount before tax but after the bonus itself) - the calculation here goes one step further to solve for the bonus that everyone else got BEFORE the CEO (who again- gets a whole 15% after that number) - while not what the question asked for- still good to know how to do. Just providing this for clarity:
$125: income before Tax/Bonus
-25: Bonus for others (solved)
100: income b4 tax/after bonus.
x.15: $15 accrual for CEO (actual answer)
x.30: apply tax rate, etc. to get to Net Income.