Current tax year:

True or False and why?

Both Chance and Ruth have worked for HGK Corp. and have participated in the corporation's defined benefit plan for the past 18 years. Chance's annual salary over the prior three years was $750,000 and Ruth's annual salary over the prior three years was $400,000. Assuming both retire effective January 1 of the current year, Chance's annual retirement payment from the defined benefit plan will be higher than Ruth's annual retirement payment. Provide a detailed justification for your