Gerry (age 56) and Elalne (age 54) have been married for 12 years and file a joint tax return. The couple lives in an apartment in downtown Manhattan, Gerry's father, Mortey, recently retired from Del Boca Vista Corporation (DBVC) where he worked for many years. Mortey participated in DBVC's defined benefit plan. Elaine is an editor and works for Pendent Publishing earning an annual $150,000 salary in 2017. Gerry is a self-employed stand-up comedian, and had net business income of $46,000 in 2017. At the advice of their neighbor, Gery and Elaine have come to you to for help in answering several retirement savings-related questions. (Use Exhibit 13-2. Exhibit 3-3, Exhibit 13-9) (Do not round intermediate calculations. Round your answers to the nearest dollar amount.) Required a. The DBVC defined benefit plan specifles a benefit of 1.5 percent for each year of service, up to a maximum of 30 percent (20 years of service), of the average of the employee's three highest years of salary. Mortey worked for the company for 25 years and earned $75,000, $78,000, and $84,000 over his final three years of service. What is Mortey's annual benefit from DBVC's defined benefit plan? b. Elaine has worked at Pendent Publishing since January 1, 2012. The company offers a defined contribution plan. It matches 100 percent of employee contributions to the plan up to 6'percent of her salary. Prior to 2017, Elaine had contributed $40,000 to the plan and her employer had contributed $28.000 to the plan. In 2017, Elaine contributed $17,000 to her traditional 401). b-1. What is the amount of her employer's matching contribution for 2017? b-2. Assuming the company uses a six-year graded vesting schedule, what is Elaine's vested balance in the plan at the end of 2017 for simplicity, disregard the plan's earnings)? c. Elaine tells you that her employer has offered her $30,000 in 10 years to defer 10 percent of her current salary (defer $15,000). Assuming that the couple's marginal tax rate is currently 30 percent, they earn an after-tax rate of return of 8 percent and they expect their marginal tax rate to be 25 percent in 10 years. (ignoring nontax factors and payroll taxes). c-1. Should Elaine accept her company's offer? c-2. What is the minimum amount she should be willing to accept (ignoring nontax factors and payroll taxes) d. Gerry has a SEP IRA and would like to contribute as much as possible to this account, what is the maximum contribution Gery can make to his SEP IRA in 2017 e. Assuming Gerry had an individual 401(03), what is the maximum amount he could contribute to the plan in 20172