Please choose the correct ending to complete the given sentence: Finance and Business: [header] How to account for deferred compensation [title] Determine the terms of the deferred compensation package. [step] Understanding the structure of the pay package is essential to executing the proper accounting treatment. For example, consider a compensation plan issued in 2015 that will pay out a lump sum of $100 , 000 to an employee in 2020.

Ending1: In this case, the purpose of the package would be to give the employee equal benefits. Instead of selecting an equal compensation package, you could take the following consideration. Ending2: Calculate the agreed terms for the period of time that you will be employed. Review the lease agreements carefully and look for any applicable restrictions and regulations. Ending3: You need to understand how the deferred compensation package is intended to benefit or negatively impact a person. [substeps] In 2020, for example, retirement contributions to your 401 (k) are fixed until completion. Ending4: [title] Get the interest rate used for the present value calculation. [step] To calculate the present value, you'll need an interest rate that represents a low-risk investment.

Answer format: ending1/ending2/ending3/ending4