Having Recently Saved the Company a Half a Million in Lost

question 40

Multiple Choice

Having recently saved the company a half a million in lost productivity,Stan was ill prepared for the unexpected termination of his employment and the humiliation of being escorted from the building.He advised his lawyer that after 25 years of continuous service,his employment contract provided for an annual salary of $120 000,an annual bonus of no less than $35 000,and monthly fringe benefits of $100.What amount will Stan's lawyer ask a court for in damages?

• A) $156 200
• B) $276 200
• C) $331 400
• D) $351 450

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Definitions:

Amortised Cost

A financial valuation technique that gradually writes off the initial cost of an asset over a period, or the method of allocating the cost of an intangible asset over its useful life.

Effective Interest Rate

The rate that discounts the estimated future cash payments or receipts through the expected life of the financial liability or asset or, when appropriate, a shorter period to the net carrying amount of the financial asset.

Reclassification Date

The specific date on which financial assets are reclassified between different categories, affecting how they are measured and recognized.

Fair Value

The amount one would earn from disposing of an asset or spend in delegating a liability in a seamless trade among market actors on the appointed valuation day.