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Business, 17.02.2020 19:34 carcon2019

Mann, Inc., has a bonus plan covering all employees. The total bonus is equal to 10% of Mann’s preliminary (prebonus, pretax) income reduced by the income tax (computed on the preliminary income less the bonus itself). Mann’s preliminary income for the year is $200,000 and the income tax rate is 40%. How much is the bonus for the year?

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