Scenario 24-3
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 2013.The price index was 17.6 in 1944 and 218.4 in 2013.
-Refer to Scenario 24-3.Josh Holloway's 2013 income in 1944 dollars is

Question

Quizplus · Accepted Answer

To find Josh Holloway's 2013 income in 1944 dollars, we need to adjust for inflation using the price index. We use the formula:
2013 income in 1944 dollars = (2013 income / 2013 price index) x 1944 price index
Plugging in the values:
2013 income in 1944 dollars = ($210,000 / 218.4) x 17.6
2013 income in 1944 dollars = $16,923.08, which is closest to option B.

Scenario 24-3 Sue Holloway Was an Accountant in 1944 and Earned $12,000