Scenario 11-3
Sue Holloway was an accountant in 1944 and earned $12,000 that year. Her son, Josh Holloway, is an accountant today and he earned $210,000 in 2008. The price index was 17.6 in 1944 and 184 in 2008.
-Refer to Scenario 11-3. Josh Holloway's 2008 income in 1944 dollars is

Question

Quizplus · Accepted Answer

To find Josh Holloway's 2008 income in 1944 dollars, we need to adjust it for inflation using the price index ratio.

Price index ratio = 184/17.6 = 10.4545

Adjusted income in 1944 dollars = 210,000/10.4545 = $20,086.96

Therefore, the answer is B.

Scenario 11-3 Sue Holloway Was an Accountant in 1944 and Earned $12,000