A company has an income of $100,000 before paying taxes and a bonus. The bonus B is to be 20% of the income after deducting income taxes. T but before deducting the bonus. So
B= 0.20(100,000 -T)
Because the bonus is a deductable expense, the amount of income tax T at a 40% rate is 40% of the income after deducting the bonus. So
T = 0.40(100,000 -B)
Solve the system algebraically to find the bonus and the amount of tax.
2006-10-08
09:25:07
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2 answers
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asked by
John T
1
in
Mathematics