This week we will need to complete the following:
“In a minimum of 5 to 7 sentences, summarize the background of your case and indicate any assumptions that you are making regarding the case. Define your problem statement and the research question(s)”
Riley Company promises to pay Janet Anderson or her estate $150,000 per year for the next 10 years, even if she leaves the
company or passes away to try to induce her to stay with the company. Riley Company wants to properly record this transaction as deferred compensation but is unsure how to record the cost. In addition, Riley Company purchased a whole life insurance policy for Janet, naming the company as the beneficiary. Riley Company wants to determine if it can offset the cash surrender value of the life insurance policy against the deferred compensation liability.