Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Javier recently graduated and started his career with DNL. Incorporated DNL. provides a defined benefit plan to all employees. According to the terms of the
Javier recently graduated and started his career with DNL. Incorporated 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 15 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 Javier's annual benefit on retirement, before taxes, under each of the following scenarios (Use Exhibit 13-1) Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no answers blank. Enter zero if applicable. roblem 13.54 Part a (Algo) Javier works for DNL for three years and three months before he leaves for another job Jovier's annual salary was $79,000. 89,000,$98,800, and $105,600 for years 1,2,3, and 4, respectively. DNL uses a five-year cliff vesting schedule EXHIBIT 13-1 Defined Benefit Plans Minimum Vestino Schedules* *Percent of employee benefit no longer subject to forfeiture. Source: Internal Revenue Service. "Title 26." www govinfo.gov. . b. Javier works for DNL for three years and three months before he leaves for another job. Javier's annual salary was $79.000. $89,000,$98,800, and $105,600 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. Javier's annual salary was $123,000,$133,000, $142,800, and $150,200 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. Javier's annual salary was $123,000 $133,000,$142,800, and $150,200 for years 4,5,6, and 7 , respectively. DNL uses a seven-year graded vesting sehedule e. Javier works for DNL for 32 years and three months before retiring. Javier's annual salary was $235,000,$245,000,$254,800, and $267,000 for his final four years of employment. Note that in the year he retired, he didn't work for the entire yeac, so he received only a portion of the annual salary Javier recently graduated and started his career with DNL. Incorporated 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 15 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 Javier's annual benefit on retirement, before taxes, under each of the following scenarios (Use Exhibit 13-1) Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no answers blank. Enter zero if applicable. roblem 13.54 Part a (Algo) Javier works for DNL for three years and three months before he leaves for another job Jovier's annual salary was $79,000. 89,000,$98,800, and $105,600 for years 1,2,3, and 4, respectively. DNL uses a five-year cliff vesting schedule EXHIBIT 13-1 Defined Benefit Plans Minimum Vestino Schedules* *Percent of employee benefit no longer subject to forfeiture. Source: Internal Revenue Service. "Title 26." www govinfo.gov. . b. Javier works for DNL for three years and three months before he leaves for another job. Javier's annual salary was $79.000. $89,000,$98,800, and $105,600 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. Javier's annual salary was $123,000,$133,000, $142,800, and $150,200 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. Javier's annual salary was $123,000 $133,000,$142,800, and $150,200 for years 4,5,6, and 7 , respectively. DNL uses a seven-year graded vesting sehedule e. Javier works for DNL for 32 years and three months before retiring. Javier's annual salary was $235,000,$245,000,$254,800, and $267,000 for his final four years of employment. Note that in the year he retired, he didn't work for the entire yeac, so he received only a portion of the annual salary
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started