Javier recently graduated and started his career with DNL Inc. DNL provides a defined benefit plan to all employees. According to the terms of the plan, for each full year of service working for the employer, employees receive a benefit of 1.5 percent of their average salary over their highest three years of compensation from the company. Employees may accrue only 30 years of benefit under the plan (45 percent). Determine Javiers annual benefit on retirement, before taxes, under each of the following scenarios (Use Exhibit 13-1): (Do not round intermediate calculations. Leave no answer blank. Enter zero if applicable.)

Problem 13-50 Part a

a. Javier works for DNL for three years and three months before he leaves for another job. Javiers annual salary was $55,000, $65,000, $70,000, and $72,000 for years 1, 2, 3, and 4, respectively. DNL uses a five-year cliff vesting schedule.

b. Javier works for DNL for three years and three months before he leaves for another job. Javiers annual salary was $55,000, $65,000, $70,000, and $72,000 for years 1, 2, 3, and 4, respectively. DNL uses a seven-year graded vesting schedule.

c. Javier works for DNL for six years and three months before he leaves for another job. Javiers annual salary was $75,000, $85,000, $90,000, and $95,000 for years 4, 5, 6, and 7, respectively. DNL uses a five-year cliff vesting schedule.

d. Javier works for DNL for six years and three months before he leaves for another job. Javiers annual salary was $75,000, $85,000, $90,000, and $95,000 for years 4, 5, 6, and 7, respectively. DNL uses a seven-year graded vesting schedule.

e. Javier works for DNL for 32 years and three months before retiring. Javiers annual salary was $175,000, $185,000, $190,000, and $195,000 (note that he didn't work for the entire year in the year he retired so he received only a portion of the annual salary in the year he retired) for his final four years of employment.