1. 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)

2. Mampong Technologies, Inc.s, (MTI) buildings were destroyed by a fire. MTI and the insurance company disagreed on the amount to recover for the damages. Consequently, you have been engaged as a forensic accountant to compute the amount recoverable for the damage after trial as an Exhibit to be presented in a court of law.

The litigants (MTI and the insurance company) have agreed on the following cost elements.

Projected earnings after trial, had the harmful event not occurred was $40 million

Project earnings after trial was $8 million

Discounting was $2 million

Required: Calculate the damages after trial. (Show your work. Hint: Use the Standard Formula for Damages calculations prescribed by the Federal Judicial Centers Reference Manual on Scientific Evidence)

3. What would be the total amount of commercial damages that should be recovered by WCC and MTI?

(Hint: Total the damages of Questions 1 and 2).