Fahad was terminated from employment with XYZ company on December 9, 2011. He claimed that...
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Accounting
Fahad was terminated from employment with XYZ company on December 9, 2011. He claimed that the reason for his termination is employment discrimination. He worked as a financial accountant with XYZ company for the past ten years. He wants to get compensation for lost earnings and lost benefits resulting from this termination.
ASSUMPTIONS/LIMITING CONDITIONS
1. The loss period ends three years after the trial date of July 25, 2013.
2. Mr Fahads annual earnings at termination date totaled SAR51,500.
3. Mr. Fahad began employment with another company on September 1, 2012 at an annual salary of SAR33,500.
4. Mr. Fahad s 2012 wages totaled SAR11,167.
5. Growth rate = 2%
6. Discount rate = 0.6%
Required:
Calculate the total net lost earnings?
Answer & Explanation
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