Question
Please refer to the following Case B for Questions Q 38 to Q 40 Case B Vincent, aged 35, is working in an accountancy firm
Please refer to the following Case B for Questions Q38 to Q40
Case B
Vincent, aged 35, is working in an accountancy firm in Country A. His estimated average life time annual salary is $800,000 which is subject to 15% tax rate. Out of his average annually salary, he estimates that 25% will be used for self-maintenance and 8% for life insurance premium. The remaining amount is used to support his family. He plans to retire at the age of 65. Assume the discount rate is 5% p.a., apply the Human Life Value Approach to estimate the current value of Vincents life to his family.
What is Vincents average annual income to support his family?
a.
$616,000
b.
$480,000
c.
$536,000
d.
$416,000
which one is correct?
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Intermediate Accounting
Authors: kieso, weygandt and warfield.
IFRS Edition
978-1118443965, 1118800532, 9781118800539, 978-0470873991
