Question
Washington Computer Corporations (WCC) warehouses were destroyed by tornadoes. WCC and the insurance company disagreed on the amount to recover for the damages. As a
- Washington Computer Corporations (WCC) warehouses were destroyed by tornadoes. WCC and the insurance company disagreed on the amount to recover for the damages. As a result, you have been engaged as a forensic accountant to compute the amount recoverable for the damages before trial as an Exhibit to be presented in a court of law.
The lawyers provided you with the following accurate and valid information.
Earnings before trial, had the harmful event not occurred was $20 million
Actual earnings before trial was $8 million
Prejudgment interest was $6 million
Required: Calculate the damages before trial? (Show your work. Hint: Use the Standard Formula for Damages calculations prescribed by the Federal Judicial Centers Reference Manual on Scientific Evidence)
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Fundamentals of Advanced Accounting
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
5th edition
978-0077924379, 77924371, 978-0078025396, 78025397, 978-0077425654, 77425650, 978-0077667061
