Frida Stevenson is very successful financial analyst for a public company. Her compensation package includes a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Frida Stevenson is very successful financial analyst for a public company. Her compensation package includes a base salary and several benefits (detailed below). Frida is approached by a good friend with an exciting employment opportunity to work for a smaller private company. She is being offered $250,000 with no benefits with this new opportunity. Analyze Frida's current compensation package and net employment income. Please advise Frida on: 1. What would be the difference in compensation if she (a) stays with her current employer and (b) accepts the new position? 2. What are non-monetary benefits of the two alternatives? 3. Provide Frida with any additional recommendations you may have for her. Please use the following information from Frida's 2022 employment for your analysis. In 2022, Frida's base salary is $175,000. Other information relevant to Frida's 2022 employment income is as follows: 1. Frida is provided with an automobile that is owned by her employer. The employer purchases the car in 2020 for $54,000 plus $7,020 is HST. During 2022, she drives the car a total of 72,000 kilometers, of which 30,000 were employment related. The automobile was used by Frida for 12 months during 2022. When she was not using the automobile, her employer required that it be returned to their premises. 2. She is a member of her employer's registered pension plan. During 2022, her employer contributed $4,500 to this plan on her behalf. In addition $4,500 was withheld from her salary and contributed to the plan. 3. As part of her employment agreement, Frida is required to travel around the world. She travelled to Orlando for a business trip. Her employer paid her airline ticket of $5000. In addition, she was provided with a meal allowance of $50 per day and a hotel allowance of $250 per day. Frida Stevenson is very successful financial analyst for a public company. Her compensation package includes a base salary and several benefits (detailed below). Frida is approached by a good friend with an exciting employment opportunity to work for a smaller private company. She is being offered $250,000 with no benefits with this new opportunity. Analyze Frida's current compensation package and net employment income. Please advise Frida on: 1. What would be the difference in compensation if she (a) stays with her current employer and (b) accepts the new position? 2. What are non-monetary benefits of the two alternatives? 3. Provide Frida with any additional recommendations you may have for her. Please use the following information from Frida's 2022 employment for your analysis. In 2022, Frida's base salary is $175,000. Other information relevant to Frida's 2022 employment income is as follows: 1. Frida is provided with an automobile that is owned by her employer. The employer purchases the car in 2020 for $54,000 plus $7,020 is HST. During 2022, she drives the car a total of 72,000 kilometers, of which 30,000 were employment related. The automobile was used by Frida for 12 months during 2022. When she was not using the automobile, her employer required that it be returned to their premises. 2. She is a member of her employer's registered pension plan. During 2022, her employer contributed $4,500 to this plan on her behalf. In addition $4,500 was withheld from her salary and contributed to the plan. 3. As part of her employment agreement, Frida is required to travel around the world. She travelled to Orlando for a business trip. Her employer paid her airline ticket of $5000. In addition, she was provided with a meal allowance of $50 per day and a hotel allowance of $250 per day.
Expert Answer:
Answer rating: 100% (QA)
A The difference in compensation would be 75000 250000 175000 B The benefits of the new position would be the higher salary and the ability to travel ... View the full answer
Related Book For
Managerial Accounting Tools for business decision making
ISBN: 978-1118096895
6th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
Students also viewed these accounting questions
-
The transactions in this practice set were completed by Hydro Paddle Boards, Inc. during January, the first month of the company s fiscal year. Hydro Paddle Boards, Inc. is a manufacturing...
-
You work for a company that designs and manufactures personal computers. Your companys R&D center is in North Dakota. The computers are manufactured under contract in Taiwan. Marketing strategy is...
-
You work for a company that designs and manufactures personal computers. Your company's R&D center is in Michigan. The computers are manufactured under contract in Taiwan. Marketing strategy is...
-
A study of Machiavellian traits in accountants was published in Behavioral Research in Accounting (January 2008). Recall that Machiavellian describes negative character traits such as manipulation,...
-
Mervyns Fine Fashions has an average collection period of 50 days. The accounts receivable balance is $95,000. What is the value of its credit sales?
-
Jana leaves her trucks motor running while she enters a Kwik-Pik Store. The trucks transmission engages and the vehicle crashes into a gas pump, starting a fire that spreads to a warehouse on the...
-
Total quality management (TQM) is based on four tenets of (1) continuous improvement, (2) employee participation, (3) product/service improvement, and (4) supplier relationships. Review each of the...
-
Suppose that Hannahs utility function is U H = 3 T + 4 C and that Joses utility function is U J = 4 T + 3 C , where T is pounds of tea per year and C is pounds of coffee per year. Suppose there are...
-
Using Byrd v. United States: What are the Facts of the Case? What is the Procedural History? What are the Issue(s)? What was the Decision by the Court? What was the Reasoning and Rule of Law Applied...
-
Factory work can be boring and monotonous. Employees must work at the pace of the assembly line or machine, with output levels closely prescribed and monitored by management. It is not surprising...
-
Explain economic principles and their applications in the real world. Summarize the different types of market structures and the role of government in economics.
-
A stove is worth $1700. You can pay $1700 on the date of purchase or $1700 plus an administration fee of $55 5 months from the purchase date. What is the implied simple interest rate? Answer: %
-
Accounts Payable had a normal beginning balance of $1,200. During the period, there were debit postings of $300 and credit postings of $800. What was the ending balance?
-
Compute the total manufacturing cost for a manufacturer with the following information for the month. Raw materials purchased $ 3 6 , 0 0 0 Direct materials used 6 2 , 7 5 0 Direct labor used 1 2 , 4...
-
Divide: 32m-72m-56m 8m3
-
Swift Corporation has a beta of 1 . 2 5 . Based on current market conditions, the required return on the Swift Corporation's common stock is 1 1 . 0 % . Global events have introduced greater risk...
-
(Reversing a string with Iterators) Write a program that inputs a line of text and prints the text backward. Use iterators in your solution
-
What is the maximum volume of 0.25 M sodium hypochlorite solution (NaOCl, laundry bleach) that can be prepared by dilution of 1.00 L of 0.80 M NaOCl?
-
The Bathtub Division of Kirk Plumbing Corporation has recently approached the Faucet Division with a proposal. The Bathtub Division would like to make a special ivory tub with gold-plated fixtures...
-
You are provided with the following transactions that took place during a recent fiscal year. Instructions Complete the table indicating whether each item (1) affects operating (O) activities,...
-
The Balanced Scorecard Institute (www.balancedscorecard.org) is a great resource for information about implementing the balanced scorecard. One item of interest provided at its website is an example...
-
Is it possible to provide absolute security for an organizations information sys tem? Why or why not?
-
How much knowledge about information security do internal and external audi tors need to be effective?
-
What are the advantages and disadvantages of biometric security devices, such as fingerprint readers, in comparison with other security measures such as passwords and locked doors?
Study smarter with the SolutionInn App