Question

Turner, a successful executive, is negotiating a compensation plan with his potential employer. The employer has offered to pay turner a $600,000 annual salary, payable at the rate of $50,000 per month. Turner counteroffers to receive a monthly salary of $40,000 ($480,000 annually) and a $180,000 bonus in five years when turner will be age 65.

Answer 1

Answer:

If the employer accepts Turner’s counteroffer, Turner will recognize as gross income $55,000 per month [($480,000 + $180,000)/12].✔️✔️✅✅