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?
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?
Chapter15: Choice Of Business Entity—other Considerations
Section: Chapter Questions
Problem 46P
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Transcribed Image Text: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?
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