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 herthree 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 $648,000 for 2017, 2018, and 2019. Whatis the maximum benefit Alicia can receive in 2020? Maximum benefit in 2020 [$] *PER MCGRAW-HILL,THE ANSWER IS NOT $370, 800*

To calculate the maximum benefit, we need to determine Alicia's average salary for the three highest…

Answered: Alicia has been working for JMM Corp.…

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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Similar questions

During 2019, Jill, age 39, participated in a Section 401(k) plan which provides for maximum employee contributions of 10%. Jill's salary was $49,600 for the year. Jill elects to make the maximum contribution. What is Jill's maximum tax-deferred contribution to the plan for the year?
At the end of 2020, Elizabeth Regina retired after 19 years of participation in her employer's defined benefit pension plan. The pension plan provides a benefit based on 1.5% of her best earnings over three consecutive years. Elizabeth's earnings during the past seven years are the highest throughout her career. If Elizabeth earned $59,000 in 2014, $65,000 in 2015, $70,000 in 2016, $74,000 in 2017, $68,000 in 2018, $73,000 in 2019 and $71,000 in 2020, what will be Elizabeth's annual pension? $18430 $20140 $19855 $20435
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 uses a seven-year graded vesting schedule) employees earn a benefit equal to 4.0 percent of the average of their three highest annual salaries for 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's vested benefit (or annual retirement benefit he has earned so far? Multiple Choice O $17,040 $56,800 $13,632
You were employed by ML Co. for 20 years and retired on 30 September 2020 at the age of 57. This income year you will receive an annual pension of $20,000 from the ML Co. superannuation fund for the rest of your life. You and your spouse have private health cover. What amount of pension will be assessable? Show working and give reasons for your answer.
Kathy is 60 years of age and self-employed. During 2023, she reported $522,000 of revenues and $104, 400 of expenses relating to her self-employment activities. If Kathy has no other retirement accounts in her name, what is the maximum amount she can contribute to an individual 401(k) for 2023? Assume she pays $30, 687 in self-employment for 2023. Note: Round your final answer to the nearest whole number.
Jordan owns and operates Jordan's Exotic Journeys (JEJ), a sole proprietorship. JEJ sponsors a profit- sharing plan. Jordan had net income of $150,000 and paid self-employment taxes of $20,000 (assumed) during the year. Jordan has decided to make a 15% contribution for her employees for the year. Assuming Jordan is over the age of 50, what amount will she contribute for herself to the plan for 2019? a. $16,957. b. $18,261. c. $28,000. d. $56,000.
On August 10, 2018, Don turned 65 and received his first pension payment. Over the year, he had contributed $68,900 to his employer's qualified retirement plan. Taxes were paid on $24,700 of this amount. The remaining $44,200 was contributed after the law was changed to permit pre-tax contributions to the plan. Don is to receive monthly benefit of $425 on the same day every month for the remainder of his life. From the 5 monthly payments, Don receives in 2018, what amount is included in gross income?
For 2021, Casey, who is single, has itemized deductions of $15,000. The standard deduction for the single filing status is $12,550. If she receives a reimbursement in 2022 of $3,000 from her medical insurance company for expenses that she deducted in 2021, how much of the $3,000 is included in gross income for 2022?
Jacob is a member of his employers defined contribution pension plan. He has pensionable earnings of $110,000 and he contributes 6% of his earnings and his employers will match his 6%. What is Jacob's pension adjustment for the year? Question 5 options: $13,200 $11,000 $6,600 $19,800 Spencer has a RRSP with a balance of $600,000. Unfortunately, Spencer experienced a severe heart attack and died. Spencer was recently divorced and she had not assigned a beneficiary to her RRSP account. She also did not have a current willWhich of the following statements about her RRSP account is correct? Question 2 options: The assets in Spencer's RRSP will be fully included in her income in the year of death The assets in Spencer's RRSP will be included at a rate of 75% in her income in the year of death The assets in Spencer's RRSP will be included at a rate of 50% in her income in the year of death The assets in the RRSP will transfer to Spencer's heirs tax free.
Greg died on July 1, 2021, and left Lea, his wife, a $45,000 life insurance policy which she elects to receive at $9,000 per year plus interest for 5 years. In the current year, Lea receives $9,500. How much should Lea include in her gross income?
Reggie is a self-employed taxpayer who turns 59 years old at the end of the year (2021). In 2021, his net Schedule C income was $300,000. This was his only source of income. This year, Reggie is considering setting up a retirement plan. What is the maximum amount he may contribute to the self-employed plan in each of the following situations? (Round your intermediate calculations to the nearest whole dollar amount.) a. He sets up a SEP IRA. b. He sets up an individual 401(k).
On January 1, 2019, Charles Jamison borrows $40,000 from his father to open a business. Charles is the beneficiary of a trust created by his aunt from which he will receive $25,000 on January 1, 2029. He signs an agreement to make this amount payable to his father and, further, to pay his father equal annual amounts from January 1, 2020, to January 1, 2028, inclusive, in retirement of the debt. Interest is 12% per year. What are the annual payments?

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