ACCOUNTING 1

ACCOUNTING

NAME

INSTITUTION
ACCOUNTING 2

ACCOUNTING

ECONOMIC LOSSES INCURRED

Losses + future losses

Lost earnings = previous years lost earnings*(1 + 2% annual earnings)

Therefore:

$78,000*(1 + 2/100 * %78,000)

$78,000*(1 + $1,560)

$78,000*$1,561

Total past lost earnings = $121,758,000

PRESENT VALUE OFFUTURE LOST EARNINGS - (AFTER TRIAL DATE)

Lost earnings * (1 + 2.5% from report)

$121,758,000 *(1 + 2.5% *$78,000)

$121,758,000 *(1 + $1,950)

$121,758,000 * $1,951

Total future lost earnings = $2,313,402,000

ECONOMIC LOSSES INCURRED

Past losses + future losses

$121,758,000 +$2,313,402,000

= $2,435,160,000