Accounting Case Drawback

To be able to lend a hand induce Jill Gregory to stay as president of the Reed Corporate, in 2000 it guarantees to pay her (or her property) $200,000 in line with yr for the following 15 years—despite the fact that she leaves the corporate or dies.  Reed needs to correctly file this transaction as deferred repayment, however is undecided of what number of years it will have to use to amortize this price.  Additionally, Reed additionally bought a “whole life” lifestyles insurance coverage for Jill, naming the corporate as the only real beneficiary.  Reed needs to establish if it could actually offset the money give up price of the coverage in opposition to the above deferred repayment legal responsibility. 

 

It must be written out with steps 1-Five for accounting analysis

1. Determine the problem/s

2. Acquire the Proof

three. Analyze and overview choices

four. Broaden Conclusion

Five. Keep up a correspondence effects and record

 

Thank you