As per the conditions given above, it can be inferred that the amount needed to record for estimated bonus liability for the year 2013 for Mason Company will be $245,000.
What is the significance of bonus liability?
The bonus liability is referred to as such liability, which is under obligation to be paid by a company to its employees as a part of the services employed by them during the entire year. This liability is generally predetermined.
In the above condition, it has been given that the bonus liability is 7% for the year 2013 over the expected earnings of $3,500,000. Thus, the liability of bonus in amount will be 7% of $3,500,000 i.e., $245,000.
Hence, the amount that the Mason Company needs to set aside as a part of its bonus liability will amount to $245,000 and its calculation has been aforementioned.
Learn more about bonus liability here:
https://brainly.com/question/11410878
#SPJ2
