Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Xuan Xuan current salary is $79000 per anum. it is expected that her salary will increase at the forecast inflation rate of 3% per annum.

Xuan Xuan current salary is $79000 per anum. it is expected that her salary will increase at the forecast inflation rate of 3% per annum. Xuan Xuan Joined ABC Ltd on 1 July 2017. All employees of the ABC Ltd are entitled to a 13-week long service leave when they complete 10 years of service. The discount rate for high quality corporate bonds with 3 years and 7 years to maturity is 6% and 8% respectively, and the likelihood of Xuan Xuan staying with the company until 30 June 2027 is 35%. Calculate the provision required for long service for Xuan Xuan at 30 June 2020 ?

a. 1488

b. 4254

c. 1265

d. 1799

e. 4961

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Engineering Economics

Authors: Chan S. Park

5th edition

136118488, 978-8120342095, 8120342097, 978-0136118480

Students also viewed these Accounting questions