This is for forensic accounting. I've attached the questions.

Chapter 12 Test Questions Use the following information for the next three questions: Assume Karen quit a job in New York that paid her $60,000 a year and that had additional employee benefits of 35 percent of salary to accept a new position in Los Angeles that allegedly would pay her $90,000 a year and have additional employee benefits of 45 percent of salary. Karen left New York, spent $10,000 in relocation expenses, and started working in Los Angeles. Karen planned to keep the job in Los Angeles for three years and then return to New York. After only two months in the new job, it became clear to Karen that the new job was nothing like it was purported to be. Her actual income was based on some hard to determine compensation model that appears to pay her about $4,000 per month, and the benefits seem to be more like 20 percent of pay. Karen is so sorry she took the new job and she is very upset with the Los Angeles based company that she believes grossly misrepresented the new job. 106. Assuming Karen can convince the court that she was intentionally mislead, under the benefit of the bargain approach discussed in Chapter 10, Karen's damages would be: a. $391,500. b. $218,700. c. $228,700. d. $80,200. e. None of the answers above is correct. 107. Assuming Karen can convince the court that she was intentionally mislead, under the out-of-pocket approach discussed in Chapter 10, Karen's damages would be: a. $243,000. b. $172,800. c. $77,200. d. $80,200. 108. Karen calls you, a forensic accounting friend from New York, to ask you advice on her situation. Your most helpful information would be to: a. Tell her that she has a really good case against her current employer and she definitely should file a law suit right away. b. Give Karen some idea of what the possible damages in such a case may be, but make it clear there are legal issues involved in the situation about which an attorney should advise her. c. Make it clear that you cannot talk to her about the case until you are contacted by an attorney. d. Tell her what a bad idea it was moving to Los Angeles. 109. If Kevin is injured at work in a work-related accident, all of the following would be logical components that would be added to the total damages suffered by Kevin except for a. the wages Kevin would have earned during the time he is off work because of his injury. b. the company-paid fringe benefits that he would have received during the time he was off work because of his injury. c. the work related expenses that he would have incurred during the time he was off work because of his injury. d. all of the above are components that would be added to the damages for Kevin during the time he was off work because of his injury. 110. If Kevin is injured at work in a work-related accident, all of the following would be logical components that would be added to the total damages suffered by Kevin except for a. the wages Kevin would have earned during the time he is off work because of his injury. b. the company-paid fringe benefits that he would have received during the time he was off work because of his injury. c. the amount of FICA tax that would be withheld from Kevin's paycheck during the time he was off work because of his injury. d. all of the above are components that would be added to the damages for Kevin during the time he was off work because of his injury. Use the following data to answer the next five questions: Josh worked for the Johnson Boat Works company as a maintenance welder for 15 years. At the beginning of each five years of employment, Josh signed a five-year work agreement with the company. Twelve months ago shortly after Josh had signed a new fiveyear agreement, Josh was fired by the new owner of the company. At the time of his firing, Josh was making $25 an hour and his employer paid benefit package, which included health care and other government mandated items, was worth about 20% of his wages. Although Josh started looking for a new similar job right away, it was eight months before he got a new job. The new job pays $22 per hour, but it is a contract that pays no benefits other than his wages. On advice from his family he recently filed a wrongful discharge case against Johnson Boat Works. 111. Assume that the court finds that Josh was fired" for cause" and that the Johnson Boat Works has no liability for wrongful discharge. In this scenario the best estimate of damages for Josh for the first twelve months after his firing is a. $62,400. b. $52,000. c. $50,960. d. There are no damages because the court found that Johnson Boat Works has no liability for firing Josh. 112. Assume that the Johnson Boat Works is found liable for the firing of Josh. Also assume a 40 hour week and a 52 week work year. Josh worked for 13 weeks during the first twelve months at his new job. What is the amount of damages suffered by Josh during the first year after he was fired? a. $62,400. b. $52,000. c. $50,960. d. None of the answers above is correct. 113. Assume that the Johnson Boat Works is found liable for the firing of Josh. Also assume a 40 hour week and a 52 week work year. Josh worked for 13 weeks during the first twelve months at his new job. Assume that he continued to work at his new job for all of years two and three of the five year work agreement and that the last two years of the contract Josh lost his contract job and had to work a minimum wage job at $15,000 a year with employer paid benefits that amounted to 10% of his wages. What is the amount of damages suffered by Josh during the entire five-year contract? a. $176,040. b. $50,960. c. $62,400. d. $84,240. e. None of the answer above is correct. 114. Assume that the Johnson Boat Works is found liable for the firing of Josh. Also assume a 40 hour week and a 52 week work year. Josh worked for 13 weeks during the first twelve months after he was fired and he worked at that job for all of the second year after he was fired. At the beginning of the third year he found a new welding job that paid $30 per hour with the same fringe benefit package as he had at the Johnson Boat Works company. What is the amount of damages suffered by Josh during the entire five-year contract? a. $176,040. b. $50,960. c. $62,400. d. $67,600. e. None of the answer above is correct. 115. Assume that the Johnson Boat Works is found liable for the firing of Josh. Based on the information you have about the case, what approach should be used to measure the lost household services that Josh suffered from his "wrongful discharge" by the company? a. We would need to estimate what percentage of household services was lost by Josh when he was fired. b. We would need to find the U.S. Department of Labor statistics on lost household services. c. It is not clear what the amount would be for Josh, but because he is a male the amount would be much less than the amount if he was a female. d. Typically there is no loss of household services component associated with the calculation of damages in a wrongful discharge case. 116. David was injured at work while operating a metal lathe. As an expert representing the defendant (the company) in this case, some of the questions you will need to address in computing damages in this case are a. what is the extent of David's injuries and how will it impact on his future ability to work? b. what is David's lost wages and company-paid benefits? c. How much FICA taxes does David have withheld from his paycheck? d. all of the above are correct. e. Answers a and b are correct. 117. If an expert witness adjusts his damage estimate for "probability of being alive", the resulting damage amount will be a. less than the damage amount without the adjustment for probability of being alive. b. more than the damage amount without the adjustment for probability of being alive. c. it could be more or less than the damage amount without the adjustment for probability of being alive. d. impossible to know without more information about the age of the parties involved in the case. 118. An expert for the defense in a permanent injury case for a work related injury incorporated into the damage calculation an adjustment for "expected worklife" using data from the U.S. Department of Labor, Bureau of Labor statistics. As a result the plaintiff's expected remaining worklife was 10 years which meant that the plaintiff would leave the workforce at the age of 62. The plaintiff's attorney argued strongly that the plaintiff expected to work until the age of 70 and both of her parents were living and in good health and in their mid 80s. As the expert witness for the defense, what arguments would you make to rebut the plaintiff's attorney arguments? a. Probability of life statistics show that some people will not survive nearly as long as others b. accidents both on and off the job can strike anyone and government statistical data takes that into account. c. people may become disabled or get laid off from their job. d. unexpected changes in the health and welfare of family members may cause a person to leave the work force before they originally intended. e. all of the answers above are correct. 119. In most situations, damage estimates for lost future wages and benefi ts are discounted to their present value using an appropriate discount rate. The reason for this is because a. the court does not want damage estimates to get too large. b. Money received in the future is not worth as much as money available now, because currently available funds can be used or invested immediately. c. it is required by law, but often it results in unrealistic amounts for damages. d. all of the answers above are correct. 120. Typically when making damage calculations experts discount future wages and other cash flows back to their present value, and experts incorporate expected future growth in wage and other benefits into their damage model. The impact of these two events is that a. the computed damages are lower than they would have been absent these two adjustments to the damage model. b. the computed damages are higher than they would have been absent these two adjustments to the damage model. c. there is no way to determine whether the damages will be higher or lower with these two adjustments. d. the computed damages can be higher or lower depending on the rate of growth of the wages and other benefits and on the discount rate used to discount the damages back to their present value. 121. Kevin is fired from his job and decides to file a wrongful discharge suit against his employer. All of the items listed below might improve Kevin's chances of prevailing in the case except for: a. contacting an employees' rights attorney. b. reading and becoming familiar with all the provisions of his employment agreement. c. acting on some of the negative instincts he has had as a result of the firing to show the employer he means business. d. requesting to see his personnel file. e. none of the above. 122. Kevin is fired from his job and decides to file a wrongful discharge suit against his employer. All of the items listed below might improve Kevin's chances of prevailing in the case except for: a. requesting and negotiating a severance package. b. not allowing the company to intimidate him. c. reviewing any promises made to Kevin by his employer and gathering any evidence that supports Kevin's understanding of the promises. d. keeping company property that Kevin may have as a bargaining chip if needed. e. none of the above 7. Sam agrees to buy an asset from Pam for $205,000, but six months later Pam says no sale. The asset is now worth $325,000. What would the damages be under the benet-of bargain rule? Show your calculation together with your answer below. (1 point)