Question: The incomplete income statement of Justin Corp.
The incomplete income statement of Justin Corp. follows. 
The employee profit-sharing plan requires that 20% of all profits remaining after the deduction of the bonus and income tax be distributed to the employees by the first day of the fourth month following each year end. Justin follows ASPE, the income tax rate is 30%, and the bonus is tax-deductible. Instructions a. Complete the condensed income statement of Justin Corp. for the year ended December 31, 2020. You will need to develop two simultaneous equations to solve for the bonus amount: one for the bonus and one for the tax. Round to the nearest dollar. b. Prepare the journal entry to record the bonus at December 31, 2020. c. Would the calculation of the bonus have changed if Justin were following IFRS?
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Sales revenue $10,000,000 Cost of goods sold 7,000,000 Gross profit 3,000,000 Administrative and selling expenses Profit-sharing bonus to employees $1,000,000 ? Income before income taxes ? Income taxes ? Net income $
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