Alicia has been working for JMM Corporated for 32 years. Alicia participates in JMM's defined benefit plan. Under the plan, for every year of service for JMM, she is to receive 2 percent of the average salary of her three highest consecutive calendar years of compensation from JMM. She retired on January 1, 2021. Before retirement, her annual salary was $570,000, $600,000, and $630,000 for 2018, 2019, and 2020. What is the maximum benefit Alicia can receive in 2021? Maximum benefit in 2021

Alicia has been working for JMM Corporated for 32 years. Alicia participates in JMM's defined benefit plan. Under the plan, for every year of service for JMM, she is to receive 2 percent of the average salary of her three highest consecutive calendar years of compensation from JMM. She retired on January 1, 2021. Before retirement, her annual salary was $570,000, $600,000, and $630,000 for 2018, 2019, and 2020. What is the maximum benefit Alicia can receive in 2021? Maximum benefit in 2021

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Alicia has been working for JMM Corp. for 33 years. Alicia participates in JMM's defined benefit plan. Under the plan, for every year of service for JMM, she is to receive 2 percent of the average salary of her three highest consecutive calendar years of compensation from JMM. She retired on January 1, 2020. Before retirement, her annual salary was $588,000, $618,000, and $648,000 for 2017, 2018, and 2019. What is the maximum benefit Alicia can receive in 2020? Maximum benefit in 2020 [$] *PER MCGRAW-HILL, THE ANSWER IS NOT $370, 800*
Mr. Wu was a marketing manager. He received an annual salary totaling $848,000 and was provided with a rent--free flat by his employer during the year ended 31 March 2023. He paid an annual membership fee of $1,600 to the Institute of Marketing in December 2022 and donated cash of $1,000 to the Community Chest in March 2023. He contributed $31, 500 to an MPF scheme (Assume voluntary contribution, if any, are not paid into a TVC account). His wife died three years ago. He has to maintain a son aged 15 and his two parents, both of whom are aged over 60. His parents resided with him throughout the year ended 31 March 2023. The salaries tax liability of Mr. Wu for the year of assessment 2022/23 is:
Shuai is 43 years old and has been asked to accept early retirement from his company. The company offered Shuai three alternative compensation packages to induce Shuai to retire: 1. $231,000 cash payment to be paid immediately. 2. A 20-year annuity of $22,000 beginning immediately. 3. A 10-year annuity of $75,000 beginning on July 1 of the year Shuai reaches age 53 (after 10 years). Required: Determine the present value of each alternative, assuming that Shuai is able to invest funds at a 8% rate. Which alternative should he choose? Note: Round your final answers to nearest whole dollar amount. Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Alternative 1 2 3 Shuai should choose PV
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Elton earned $120,000 working as a recording engineer last year. The total amount of his contribution into his defined contribution pension plan was $12,000. These contributions earned income of $600 during the year. Elton also owns a personal Registered Retirement Savings Plan (RRSP). Assuming he has no unused RRSP contribution room carry-forward amounts from previous years, how much money can Elton contribute to his RRSP account this year if the money purchase limit is $24,000? O $9,000 $9,600 $8,400 $21,000
Leslie participates in IBO's nonqualified deferred compensation plan. For 2023, she is deferring 10 percent of her $300,000 annual salary. Based on her deemed investment choice, Leslie expects to earn a 7 percent before-tax rate of return on her deferred compensation, which she plans to receive in 10 years. Leslie's marginal tax rate in 2023 is 32 percent. IBO's marginal tax rate is 21 percent (ignore payroll taxes in your analysis). (Use Table 1.) Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount. a. Assuming Leslie's marginal tax rate in 10 years (when she receives the distribution) is 33 percent, what is Leslie's after-tax accumulation on the deferred compensation?
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Alicia has been working for JMM Corp. for 33 years. Alicia participates in JMM’s defined benefit plan. Under the plan, for every year of service for JMM she is to receive 2 percent of the average salary of her three highest years of compensation from JMM. She retired on January 1, 2019. Before retirement, her annual salary was $609,000, $639,000, and $669,000 for 2016, 2017, and 2018. What is the maximum benefit Alicia can receive in 2019?
Grace's employer is now offering group-term life insurance. The company will provide each employee with $185,000 of group-term life insurance. It costs Grace's employer $875 to provide this amount of insurance to Grace each year. Assuming that Grace is 31 years old, use the tale to determine the monthly premium that Grace must inckude in income as a result of receiving the group-term life benefit. EXHIBIT 12-08 Uniform Premiums for $1,000 of Group-Term Life Insurance Protection 5-Year Age Bracket. Cost Per $1,000 of Protection for One Month Under 25 $0.05 25 to 29 0.06 30 to 34 0.08 35 to 39 0.09 40 to 44 0.10 45 to 49 0.15 50 to 54 0.23
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Prince Distribution Incorporated has an unfunded postretirement benefit plan. Medical care and life insurance benefits are provided to employees who render 10 years service and attain age 55 while in service. At the end of 2024, Jim Lukawitz is 31. He was hired by Prince at age 25 (6 years ago) and is expected to retire at age 62. The expected postretirement benefit obligation for Lukawitz at the end of 2024 is $50,000 and $54,000 at the end of 2025. Calculate the accumulated postretirement benefit obligation at the end of 2024 and 2025 and the service cost for 2024 and 2025, as pertaining to Lukawitz. Note: Enter your answers in whole dollar amount. Round your final answers to the nearest whole dollar. APBO Service 2024 ____ _____ 2025 ____ _____
Fred Blake has agreed to work for the Cummings Foundation at a total annual salary of $ 55,000. He is uncertain whether he should be paid bi-weekly or semi - monthly and has asked for your assistance. Calculate the typical deductions for CPP and El that must be taken from Fred's salary under either alternative. Will the choice affect the total El or CPP Fred pays during the year?