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Company B has a policy that employees are entitled to a yearly 2 weeks sick leave. policy is accumulating and non-vesting. Sick leave Sick
Company B has a policy that employees are entitled to a yearly 2 weeks sick leave. policy is accumulating and non-vesting. Sick leave Sick leave unused in a financial year can only be carried forward for 1 financial year. example, unused sick leave in the financial year ended 30 June 2018 must be used by 30 June For 2019. When taking sick leave, current year entitlements must be used first before any prior year carried forward balance is to be used. In year 30 June 2018, an employee Mr CEO Drama Queen has taken 6 days of sick leave. There was no opening balance brought forward on 1 July 2017. It is expected that the Mr CEO Drama will take sick leave in next year under the follow scenario: (Scenario W) 8 days sick leave next year, (Scenario X) 10 days. A likely scenario when the competition is higher in the industry. (Scenario Y) 13 days. A likely scenario when competition is high and the flu season is bad. (Scenario Z) 18 days. A likely scenario when competition is high, flu season is bad, and the board is hiring a CFO candidate who is known for having an aggressive work style. The CEO yearly salary is $260,000. What is the sick leave EXPENSE for Mr Drama in the year ended 30 June 2018 under the different scenario? What is the sick leave EXPENSE for Mr Drama in the year ended 30 June 2018 under the different scenario? a) All 10 days entitlement $10,000 is the expense. b) Only the 6 days used or $6,000 is the expense. c) W: ($1000 x 6) + ($1000 x 0) X: ($1000 x 6 ) + ($1000 x 0) Y: ($1000 x 6) + ($1000 x 3) Z: ($1000 x 6) + ($1000 x 8) d) W: ($1000 x 6) + ($1000 x 0) X: ($1000 x 6 ) + ($1000 x 0) Y: ($1000 x 6) + ($1000 x 3) Z: ($1000 x 6) + ($1000 x 4) e) None of the above.
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B Only the 6 days used or 6000 is the expense EXPLANATION The expense for Mr Drama would only ...Get Instant Access to Expert-Tailored Solutions
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