HI and DRI Case#1

>Among the assumptions in this case is that water is being used as the unit of measurement in assessing the wealth that HI and DRI possess.

To begin with, Dri owns 400,000 liters of water while Hi owns 340,000 liters of water.

>The assertion that that Hi makes claiming that Dri’s land should not be counted because it is an inheritance is not correct. The land should be counted since it is an asset that he owns. In accounting, any income such as dividends, rents or interest that is generated from inherited assets is reportable. This works to prove that this land is an asset owned by Dri and should be included in assessing his net worth.

Since water per liter is the measurement unit, the unit of land should be converted to this unit.

Currently, 45,000 liters of water is equivalent to 150 km2 of land (We cannot use the valuation from 15 years ago since we have to account for inflation).

Given this; 45,000 liters = 150 km2

?            = 1 km2

(45 x 1) / 150= 0.3

Therefore, 1 km2 of land = 0.3 liters of water

Given this; DRI > 200,000 x 0.3= 60,000 liters                         HI > 300,000 x 0.3= 90,000 liters

 

Dri has a -liability of 35,000 liters owed to Choppa

-Speeder worth 12,000 liters

-Sleds worth (1,000 x 0.3) = 300 liters

-Oil bath worth 5,000 liters

3,000 liters debt to Chew- E

>Another assumption for the case is that assets associated with the wife are being counted as part of the husband’s wealth.

Valuing the Condensers: (1 x 3,600) / 3= 1,200

Therefore, 1 condenser = 1,200 liters of water

Given this, Bri’s wife owns 24 + 9 = 33 condensers x 1,200 = 39,600 liters

Hi owns -Oil bath worth 3,000 liters

-Sled worth 2,000 liters

-Speeder worth (30 x 0.3) = 10 liters

 

DRI: (400,000+60,000+12,000+300+5,000+39,600-35,000-3,000) = 478,900 liters

HI    : (340,000+90,000+3,000+2,000+10) = 435,010 liters

 

DRI is worth 478,900 liters of water

HI is worth 435,010 liters of water

Therefore, DRI is wealthier

Do you need an Original High Quality Academic Custom Essay?