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*
Q: Drake has worked for GT for the last 20 years and been a participant in its defined benefit plan. In…
A: A defined benefit plan is a type of employer-sponsored retirement plan that promises employees a…
Q: D. ye and three months before he leaves another job. Javier's annual salary v $56,000, $66,000,…
A: Payroll accounting is a written financial record about the employee's salary, working hours,…
Q: What is the interest cost for 2023? b. What is the projected benefit obligation on December 31,…
A:
Q: Star Inc. sponsors a defined benefit plan where employees vest 25% after 2 years, 50% after 4 years,…
A: Before solving the question, let us understand the following:- Defined Benefit Obligation - Vested…
Q: .Beall, Inc. has a defined-benefit pension plan covering its 50 employees. Beall agrees to amend its…
A: The retirement benefits primarily consist of the workers' leave encashment (employees are permitted…
Q: Drake has worked for GT for the last 20 years and been a participant in its defined benefit plan. In…
A: A defined benefit plan is a type of employer-sponsored retirement plan that promises employees a…
Q: Ahmad, age 55, is employed by BB Trucking Company as a tire repair specialist. He earns $62,000 per…
A: A 401(k) plan is a tax-advantaged retirement savings plan available to employees in the United…
Q: Blossom, Inc. has a defined-benefit pension plan covering its 50 employees. Blossom agrees to amend…
A: Pension indicates the amount that the employer added to the pension plans of its employees during…
Q: Dean has earned $75,000 annually for the past seven years working as an architect for WCC Inc. Under…
A: When the employee retires, he is given some extra amount on behalf of the company and the entity, it…
Q: Gilly is the PFO of Petro, Incorporated This year, Gilly's compensation package was $912,500 which…
A: A cash basis taxpayer is an individual or business entity that recognizes income and expenses for…
Q: Salama is married to Omran. Both are 48 years of age. They itemize their deductions. Their salaries…
A: Particulars Amount ($) Salary received by Omran & Salama 150,000 Less: Interest on Capital…
Q: The EPBO for Branch Industries at the end of 2021 was determined by the actuary to be $20,000 as it…
A: APBO (Accumulated Post-retirement Benefit Obligation) is the proportion of EPBO (Expected…
Q: A corporation's pension plan provides a lifetime annual income to its employees upon retirement at…
A: Salary=$62879Period=16 yearsAnnual percentage=2%
Q: In 2023, Maggy (34 years old) is an employee of YBU Corporation. YBU provides a 401(k) plan for all…
A: As per IRS rules 2022 , the individual contribution limit is $ 20,500 if…
Q: In 2021, Maggy (34 years old) is an employee of YBU Corporated YBU provides a 401(k) plan for all…
A: Taxable income is the amount of income an entity makes every year upon which the government levies…
Q: Clark Industries has a defined benefit pension plan that specifies annual, year-end retirement…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Perry Industries has a defined benefit pension plan that specifies annual, year-end retirement…
A: Defined-benefit plans are employer-based initiatives that offer benefits according to factors like…
Q: Pharoah Company sponsors a defined benefit plan for its 100 employees. On January 1, 2025, the…
A: Based on the provided information, we can calculate various figures related to Pharoah Company's…
Q: Alicia has been working for JMM Corporation for 35 years. Alicia participates in JMM's defined…
A: A defined-benefit plan is often a plan which is organized by an employer and is often a retirement…
Q: Classified Electronics has an unfunded retiree health care plan. Each of the company's three…
A: The expected post-retirement benefit obligation is the discounted present value of an actuarial…
Q: Ivanhoe, Inc. has a defined-benefit pension plan covering its 50 employees. Ivanhoe agrees to amend…
A: Number of service years =50+40+30+20+10 = 150
Q: Matilda works for a company with 1,000 employees. The company has a hospitalization insurance plan…
A: (1) Employee must pay the first $3,000 of their Medical Expenses. (2) Matilda's Employer has…
Q: Steve retired at the beginning of 2020. He worked for a company with a defined benefit plan. The…
A: Retirement benefit = Avg. Salary of past three years * 3% * no. of years served in company
Q: Beth Campbell works for ZoneXX Inc. in York, Ontario. Beth is going to receive a $6,000.00…
A: Contribution towards the Canadian Pension plan is equal to the contribution rate of the year…
Q: Rachel Company has established a defined benefit pension plan for its employees. Annual payments…
A: The question is related to Employees benefits. The employee benefits in which the employer do…
Q: At the end of 2020, Elizabeth Regina retired after 19 years of participation in her employer's…
A: Annual pension refers to an amount which is received from the former employer after completing the…
Q: the amortization fraction for each year the amortization of the prior service co
A: Amortization is a calculation of an expense deducted to arrive at net income on your financial…
Q: Hank earns $21.00 per hour with time-and-a-half for hours in excess of 40 per week. He worked 50…
A: When all deductions have indeed been done, the employee's net pay is the amount that is still due…
Q: Dean has earned $71,000 annually for the past six years working as an architect for WCC Inc. Under…
A: "Vested profit" is the part of an employee's retirement account balance that they are allowed to…
Q: You were employed by ML Co. for 20 years and retired on 30 September 2020 at the age of 57. This…
A: Here discuss about the details of the assessable income which are deemed from the superannuation…
Q: Alicia has been working for JMM Corporated for 43 years. Alicia participates in JMM's defined…
A: A defined-benefit plan is often a plan which is organized by an employer and is often a retirement…
Q: Pendulum Enterprises has a defined benefit plan. Employees receive a pension equal to 2% of the…
A: Part 1: Answer: Mary-Lou's annual pension benefit is $33,750.Explanation:Part 2: Explanation:Step 1:…
Q: Select answer from the options below 192 for 2026 and 590 overall.
A: Defined-benefit pension plans are retirement plans where employers commit to providing specific…
Q: On January 1, Pharoah Company had 64,500 shares of no-par common stock issued and outstanding. The…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: established
A: Introduction The amount that the employer must pay into the pension plan is specified in this plan.…
Q: Required information [The following information applies to the questions displayed below.] Javier…
A: Answer:- Tax benefit meaning:- Any tax law that lowers the tax liability of the tax payer is…
Q: In 2023, Ms. Gesner's employer provides her with an automobile for 11 months of the year. The…
A: minimum taxable benefit refer to the lowest taxable value assigned to a benefit provided by an…
Q: Shuai is 43 years old and has been asked to accept early retirement from his company. The company…
A: Alternative 1 :Immediate cash payment paid = $231,000Alternative 2:Number of years = 20 yearsAnnuity…
Q: A corporation's pension plan provides a lifetime annual income to its employees upon retirement at…
A: Given information: Salary upon retirement is $50,732 Number of years of service is 26 years Rate of…
Q: Prince Distribution Inc. has an unfunded postretirement benefit plan. Medical care and life…
A: Attribution period = ( 55 - 25 ) = 30 years. Calculation of…
Q: Classified Electronics has an unfunded retiree health care plan. Each of the company’s three…
A: 1. Expected postretirement benefit obligation at the end of 2021 = Present value of retirement…
Step by step
Solved in 3 steps
- Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1,4% x service years x final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2007 and is expected to retire at the end of 2041 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $97,000 at the end of 2021 and the company's actuary projects her salary to be $315,000 at retirement. The actuary's discount rate is 7%. (EV of $1. PV of $1. FVA of $1. PVA of $1. EVAD of $1 and PVAD of $1 (Use appropriate factor(s) from the tables provided.) Required: 2 Estimate by the accumulated benefits approach the amount of Davenport's annual retirement payments earned as of the end of 2021. 3. What is the company's accumulated benefit obligation at the end of 2021 with respect to Davenport? (Do not round intermediate calculations. Round yout final answer to the nearest whole dollar.) 4. If no estimates are changed in…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.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
- Beginning 2019, Maigo and Maika Company grant 15 days of vacation a year to each of the 100 employees if they are still employed at the end of the year. The vacation accumulates and may be taken starting January 1 of the following year. The employees work 8 hours a day. The rate for all employees during 2019, 2020, and 2021 are P70, P75 and P80 per hour, respectively. During 2020 and 2021, the employees each used an average of 5 and 8 vacation days, respectively. The entity’s policy is to record the liability existing at the end of each year at the wage rate for the current year. 1. What amount should be reported as vacation liability on December 31, 2019, 2020 and 2021?2. What amount should be reported as vacation pay expense on December 31, 2019, 2020, and 2021, respectively?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 ____ _____s
- Three employees of the Horizon Distributing Company will receive annual pension payments from the company when they retire. The employees will receive their annual payments for as long as they live. Life expectancy for each employee is 14 years beyond retirement. Their names, the amount of their annual pension payments, and the date they will receive their first payment are shown below: Employee Tinkers Evers Annual Payment $ 27,000 Date of First Payment 12/31/2027 32,000 37,000 12/31/2028 12/31/2029 Chance Required: 1. Compute the present value of the pension obligation to these three employees as of December 31, 2024. Assume an 11% interest rate. 2. The company wants to have enough cash invested at December 31, 2027, to provide for all three employees. To accumulate enough cash, they will make three equal annual contributions to a fund that will earn 11% interest compounded annually. The first contribution will be made on December 31, 2024. Compute the amount of this required annual…Vizsla Services offers its employee a defined benefit pension plan. This plan pays the employee 2% of the employee's salary for each year of service, with a maximum of 30 years. The employee is projected to have a final salary of $520,000. The employee has worked for Vizsla Services for 8 year and is expected to work for the company for another 17 years. The employee is expected to live for 28 years after retiring. Vizsla Services uses a 4% interest rate for all calculations for its post-retirement benefits and all calculations are ordinary annuities. What is gross PBO for the current year?Janice earns $85,000 working as an administrative assistant in a public company based in New York. The company provides a matching contribution in the 401(k) plan of 50% up to a maximum contribution of 4% of compensation. Her 401(k) plan account had $20,000 in it at the beginning of the year. She contributed $5,000 to the plan this year and the employer made the matching contribution before year end. The ending balance of the account is $30,000. What is her return on her investments this year for the 401(k) account? A. 8.8%. B. 9.9%. C. 12.5%. D. 25%.
- Sheridan Ltd. initiated a one-person pension plan in January 2015 that promises the employee a pension on retirement according to the following formula: pension benefit = 2.6% of final salary per year of service after the plan initiation. The employee began employment with Sheridan early in 2015 at age 33 and expects to retire at the end of 2041, the year in which he turns 60. His life expectancy at that time is 21 years. Assume that this employee earned an annual salary of $49,000 when he joined Sheridan, that his salary was expected to increase at a rate of 4% per year, and that this remains a reasonable assumption to date. Sheridan considers a discount rate of 8% to be appropriate. (a) × Your answer is incorrect. What is the employee's expected final salary? (Round your answer to O decimal places, e.g. 5,275.) Expected final salary $ 108442Ivanhoe, Inc. has a defined-benefit pension plan covering its 50 employees. Ivanhoe agrees to amend its pension benefits. As a result, the projected benefit obligation increased by $2790000. Ivanhoe determined that all its employees are expected to receive benefits under the plan over the next 5 years. In addition, 10 employees are expected to retire or quit each year. Assuming that Ivanhoe uses the years-of-service method of amortization for prior service cost, the amount reported as amortization of prior service cost in year one after the amendment is $558000. O $651000. $930000. O $186000.Classified Electronics has an unfunded retiree health care plan. Each of the company's three employees has been with the firm since its inception at the beginning of 2020. As of the end of 2021, the actuary estimates the total net cost of providing health care benefits to employees during their retirement years to have a present value of $66,000. Each of the employees will become full eligible for benefits after 20 more years of service but aren't expected to retire for 35 more years. The interest rate is 4%. Required: 1. What is the expected postretirement benefit obligation at the end of 2021? 2. what is the accumulated postretirement benefit obligation at the end of 2021? 3. what is the expected postretirement benefit obligation at the end of 2022? 4. What is the accumulated postretirement benefit obligation at the end of 2022? 1. Expected postretirement benefit obligation 2021 _______ 2. Accumulated postretirement benefit obligation 2021 _______ 3. Expected…