Bonus and taxes. A company has an income of $100,000 before paying taxes and a bonus. The bonus B is
Question: Bonus and taxes. 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
![](/images/downloads-images/question-019002_files/image002.png)
Because the bonus is a deductible expense, the amount of income tax T at a 40% rate is 40% of the income after deducting the bonus. So
![](/images/downloads-images/question-019002_files/image004.png)
a) Use the accompanying graph to estimate the values of T and B that satisfy both equations.
b) Solve the system algebraically to find the bonus and the amount of tax.
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Solution: The solution file consists of 2 pages
Solution Format: Word Document![](/images/msword.png)
Solution Format: Word Document
![](/images/msword.png)