Dean has earned $71,000 annually for the past six years working as an architect for WCC Inc. Under WCC's defined benefit plan (which usesa seven-year graded vesting schedule) employees earn a benefit equal to 4.0 percent of the average of their three highest annual salariesfor every full year of service with WCC. Dean has worked for six full years for WCC and his vesting percentage is 80 percent. What is Dean'svested benefit (or annual retirement benefit he has earned so far?Multiple ChoiceO $17,040$56,800$13,632

"Vested profit" is the part of an employee's retirement account balance that they are allowed to…

Answered: Dean has earned $71,000 annually for…

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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A corporation's pension plan provides a lifetime annual income to its employees upon retirement at age 65. The plan provides 2% for each year of service of the employee's salary upon retirement. Those who retire before 65 have their benefit reduced by 1.4% for each year before 65 that they retire. Russ retires at age 62 with 19 years of service. If his salary upon retirement is $79,497, what is his annual pension benefit?
Alicia has been working for JMM Corp. 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, 2020. Before retirement, her annual salary was $570,000, $600,000, and $630,000 for 2017, 2018, and 2019. What is the maximum benefit Alicia can receive in 2020?
Hardev
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, 2018. Before retirement, her annual salary was $579,000, $609,000, and $639,000 for 2015, 2016, and 2017. What is the maximum benefit Alicia can receive in 2018? Maximum benefit in 2018
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Benito has $5,486 carry-forward balance from unused RRSP contribution room in the prior year. He had a salary income of $62,867 last year. The maximum contribution for the year is the lesser of $26,500 or 18% of prior year's earned income. He and his employer each contributed 3% of his salary to a defined contribution pension plan. Investment income totaled $6,500 from interest and dividends in the prior year. How much could Benito contribute to his RRSP this year?
Calculate the taxable value of the fringe benefit using the statutory formula in the following case context: Carron provides his employee (Rabbie) with the use of a Nissan Xtrail car 196days during the FBT year. During the period, the car travelled 15,000 km. Carron purchased the car last year for $45,000. Rabbie contributed $1,500 towards the cost of running the car and has provided Carron with relevant documentation.
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
To encourage employees older than 60 years to extend their employment with the entity, BennettCorporation promises its 60-year-old employees to lump sum benefit equal to 1 per cent of final salary for each year of service they remain employed by the entity after their 60th birthday provided they remain in the employ of Bennett Corporation until they are 65, at which time, in accordance with local laws, employees are required to retire. The benefit is payable to the employees on retirement. Razor’s 60th birthday is on 1 January 2020. His salary for the year ended 31 December 2020 is P400,000. At the 31st of December 2020 the entity made the following actuarial assumptions:• Razor’s salary should increase by 6 percent (compound) each year.• The appropriate discount rate is 10 percent per year.Requirements:1. What is the expected final salary of Razor?2. What is the projected benefit obligation on December 31, 2022?3. What amount of total employee benefit expense will be recognized in…
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 $591,000, $621,000, and $651,000 for 2017, 2018, and 2019. What is the maximum benefit Alicia can receive in 2020? Answer is complete but not entirely correct. Maximum benefit in 2020 $ 409,860
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Javier recently graduated and started his career with DNL Inc. DNL provides a defined benefit plan to all employees. According to the terms of the plan, for each full year of service working for the employer, employees receive a benefit of 1.5 percent of their average salary over their highest three years of compensation from the company. Employees may accrue only 30 years of benefit under the plan (45 percent). Javier works for DNL for six years and three months before he leaves for another job. Javier’s annual salary was $80,000, $87,000, $90,000, and $95,000 for years 4, 5, 6, and 7 respectively. DNL uses a five-year cliff vesting schedule. Determine Javier’s annual benefit on retirement, before taxes.

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