Assume Jane's annual retirement benefit is $32,000. What amount must be on deposit right before the start of Jane's retirement inorder to assure that all the retirement benefits will be paid?Example of Answer: 4000.20 Two decimal points. No comma, space, or $ sign.AnswerAssume the amount that must be on deposit right before the start of Jane's retirement in order to assure that all the retirementbenefits will be paid is $550,000. What amount should Edwards Company set aside at the end of.cach.vear for the next 20 years(during the years that Jane is working) in order to assure that all the retirement benefits will be paid and honored? Example of Answer:4000 20 Two decimal points. No comma, space, or $ sign,Answer Edwards Company just hired another employee - Jane. The Edwards Company provides supplemental retirement benefits to itsemployees realizing the insufficiency of the Social Security benefits for a comfortable retirement life. Edwards has asked you toperform the necessary computations pertaining to the retirement benefits for Jane.Jane's current salary is $40,000. Jane will be entitled to this supplementary retirement benefits after 20 years of work- the start of the21styear. The retirement plan will last for 25 years. Per company practices. Jane will be granted with a year-end salary increase of 2% peryear effective Jan. 1st of each year that she works.The amount of annual retirement benefit is going to be 45% of Jane's salary right before the start of the retirement and will be paid atthe start of each year, Any invested funds for pension will earn 4% compounded annually.Click here to use Excel.Compute Jane's annual retirement benefitExample of Answer: 4000.20 Two decimal points.No comma, space, or $ sign,Answer

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Answered: Edwards Company just hired another…

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*
You are employed as an accountant. Your company’s retirement plan states that, upon retirement, an employee (not less than 60 years but not more than 65 years of age) is entitled to a lump sum payment equal to the employee’s final monthly salary level multiplied by the number of years in service (not less than 10 years). At the end of month following the month of retirement and every month thereafter, the retired employee is entitled to a monthly pension equal to one-eighth (1/8) of the final monthly salary level. The monthly pensions cease upon death of the retired employee. However, if the employee has immediate dependent(s) with age of less than 18 years, the dependent(s) will be entitled to the monthly pensions, which will cease when the dependent(s) reaches 18 years of age. What type of post-employment benefit plan does your company have? A. Cannot be determined; insufficient information! B. Defined benefits plan C. Defined contribution plan D. Defined…
You have been hired as a benefit consultant by Jean Honore, the owner of Sweet Angels. She wants to establish a retirement plan for herself and her three employees. Jean has provided the following information. The retirement plan is to be based upon annual salary for the last year before retirement and is to provide 50% of Jean's last-year annual salary and 40% of the last-year annual salary for each employee. The plan will make annual payments at the beginning of each year for 20 years from the date of retirement. Jean wishes to fund the plan by making 15 annual deposits beginning January 1, 2025. Invested funds will earn 11% compounded annually. Information about plan participants as of January 1, 2025, is as follows. Jean Honore, owner: Current annual salary of $49,990; estimated retirement date January 1, 2050. Colin Davis, flower arranger: Current annual salary of $37.190; estimated retirement date January 1, 2055. Anita Baker, sales clerk: Current annual salary of $20,900;…
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Elodie is paid her commissions together with her bi-weekly salary of $1,000.00. This pay period her commissions are $4,300.00. Calculate her Québec Pension Plan contribution for this pay period. Your answer:
Your employer uses a final pay benefit formula to determine retirement payments to its employees. The employee receives an annual benefit of 3% of her average salary during her last 5 years of service times her total years employed. If she has 25 years of total service and her average salary over her last 5 years was $75,000, calculate her annual retirement benefit.
Edwards company just hired another employee Jane, the Edwards company provides supplemental retirement benefits to its employees realizing the insufficiency of the Social Security benefits or comfortable retirement life Edwards has asked you to perform the necessary computations pertaining to the retirement benefit for Gene. Jane’s current salary is $40,000. Jane will be entitled to the supplementary retirement benefits after 20 years of work the start of the 21st year The retirement plan will last for 25 years per company practices Jane will be granted with a year and salary increase of 2% per year effective January 1 of each year that she works the amount of annual retirement benefit is going to be 45% of James salary right before the start of the retirement and will be paid at the start of each year. Any invested funds for pension will earn 4% compounded annually, compute Jane’s annual retirement benefit. Assume James’s retirement benefit is $32,000 what amount must be on deposit…
How do I solve the following: An employee that has 35 years until retirement has a current salary of $30,000 per year. The employee's wages are expected to increase by 5% annually over the next 35 years. The employer has a defined benefit pension plan in which a worker’s annual pension benefit is equal to 2% of the employee's final year’s wage for each year of employment, multiplied by the number of years of employment. The employee's expected annual pension benefit is calculated as $115,836.32. The cmpany contributes to the pension plan each year for the next 35 years. Assume 10% actuarial rate of return, and 30 years of retirement life. At the employee's time of retirement, what does the accumulated amount in the employee's pension plan have to be in order to meet the employee's annual pension benefit each year in 30 years?
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?
RD.16. I cannot figure out what the minimum years of service would be.. thanks!.
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 ____ _____
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?

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