Bernie Bird Co.'s retirement plan provides for a lump sump benefit. equal to the final monthly salary multiplied by the years of service, to employees who have reached the age of 60 and have rendered at least five years of service. The year of employment and the year in which the employee reaches the age of 60 are counted as full years. Mr. Wooten, who has just turned 50, was employed during the year. Mr. Wooten's current monthly salary is P60,000 and this is expected to increase by 2% per year. The discount rate is 10%. How much are the (1) projected lump sum benefit to be received by Mr. Wooten on his retirement date and (2) current service cost for the year? O 804,54028, 199 O 718,360.27,664 O 826,940:30,036 O 732,34028, 199
Bernie Bird Co.'s retirement plan provides for a lump sump benefit. equal to the final monthly salary multiplied by the years of service, to employees who have reached the age of 60 and have rendered at least five years of service. The year of employment and the year in which the employee reaches the age of 60 are counted as full years. Mr. Wooten, who has just turned 50, was employed during the year. Mr. Wooten's current monthly salary is P60,000 and this is expected to increase by 2% per year. The discount rate is 10%. How much are the (1) projected lump sum benefit to be received by Mr. Wooten on his retirement date and (2) current service cost for the year? O 804,54028, 199 O 718,360.27,664 O 826,940:30,036 O 732,34028, 199
Chapter9: Deductions: Employee And Self- Employed-related Expenses
Section: Chapter Questions
Problem 8DQ
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Transcribed Image Text:Bernie Bird Co.'s retirement plan provides for a lump sump benefit. equal to the final monthly salary multiplied by the years of service, to
employees who have reached the age of 60 and have rendered at least five years of service. The year of employment and the year in
which the employee reaches the age of 60 are counted as full years. Mr. Wooten, who has just turned 50, was employed during the year.
Mr. Wooten's current monthly salary is P60,000 and this is expected to increase by 2% per year. The discount rate is 10%. How much are
the (1) projected lump sum benefit to be received by Mr. Wooten on his retirement date and (2) current service cost for the year?
O 804,540:28,199
O 718,360:27,664
O 826,940:30,036
O 732,340:28, 199
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