Under the terms of his salary agreement, president Chris Walters has an option of receiving either an immediate bonus of $ 55,000, or a deferred bonus of $ 70,000 payable in 10 years. Click here to view factor tables Ignoring tax considerations and assuming a relevant interest rate of 4%, which form of settlement should Walters accept? Present value of the deferred bonus $ enter a dollar amount rounded to 0 decimal places select an option: Accept Bonus now - or - accept deffered bonus in 10 yrs
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Under the terms of his salary agreement, president Chris Walters has an option of receiving either an immediate bonus of $ 55,000, or a deferred bonus of $ 70,000 payable in 10 years.
Click here to view factor tables
Ignoring tax considerations and assuming a relevant interest rate of 4%, which form of settlement should Walters accept?
| Present value of the deferred bonus | $ enter a dollar amount rounded to 0 decimal places | |
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select an option: Accept Bonus now - or - accept deffered bonus in 10 yrs
|
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- Under the terms of his salary agreement, president John Walters has an option of receiving either an immediate bonus of $71,500, or a deferred bonus of $91,000 payable in 10 years.Ignoring tax considerations and assuming a relevant interest rate of 4%, which form of settlement should Walters accept? Present value of deferred bonus $ Accept Deffered Bonus in 10 years or Accept Bonus NowGarland incorporated offers a new employee a single-sum sining bonus at the date of employment, june 1,2024. Alternatively, the employee can receive $42,000 at the date of employment plus 13,000 each june 1 for four years, beginning in 2007. Assuming the employee's time value of money is 8% annually, what single amount at the employment date would make the option desirable? A. $50,187 B.$78,915 C.$52,915 D.$76,187Under an incentive companesation plan, the general manager of Jelly is entitled to a year-end bonus of 10%. The net income for 2020 of Jelly before anydeduction for bonus and income tax amounted to 2,200,000. The prevailing income tax rate is 30%. How much is the bonus of the general manager if the bonus is based on net income after deducting both bonus and tax?
- Garland Inc. offers a new employee a single-sum signing bonus at the date of employment, June 1, 2021. Alternatively, the employee can receive $50,000 at the date of employment plus $21,000 each June 1 for four years, beginning in 2024. Assuming the employee's time value of money is 9% annually, what single amount at the employment date would make the options equally desirable?During 2020, Juan Gonzalez, president of Acme Inc. was paid a semimonthly salary of $6,100. Computer the amount of FICA taxes that should be withheld from him. A. 9th paycheckB. 22nd paycheckC. 24th paycheckD. If Juan's year to date earnings as of his 24th paycheck are $146,400 and his year-end bonus is $100,00, how much is the additional HI tax withheld?Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.5% × service years × final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2007 and is expected to retire at the end of 2041 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $98,000 at the end of 2021 and the company's actuary projects her salary to be $320,000 at retirement. The actuary's discount rate is 8%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) At the beginning of 2022, the pension formula was amended to: 1.65% × Service years × Final year's salary The amendment was made retroactive to apply the increased benefits to prior service years. Required: 1. What is the company's prior service cost at the beginning of 2022 with respect to Davenport after the amendment described above?2. Since the amendment occurred at…
- Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.6% × service years × final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2007 and is expected to retire at the end of 2041 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $90,000 at the end of 2021 and the company's actuary projects her salary to be $240,000 at retirement. The actuary's discount rate is 7%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)Required:2. Estimate by the accumulated benefits approach the amount of Davenport's annual retirement payments earned as of the end of 2021.3. What is the company's accumulated benefit obligation at the end of 2021 with respect to Davenport? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar.)4. If no estimates are changed in the…Sachs Brands’s defined benefit pension plan specifies annual retirement benefits equal to 1.6% × service years × final year’s salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2007 and is expected to retire at the end of 2041 after 35 years’ service. Her retirement is expected to span 18 years. Davenport’s salary is $90,000 at the end of 2021 and the company’s actuary projects her salary to be $240,000 at retirement. The actuary’s discount rate is 7%.Required:1. Draw a time line that depicts Davenport’s expected service period, retirement period, and a 2021 measurement date for the pension obligation.2. Estimate by the projected benefits approach the amount of Davenport’s annual retirement payments earned as of the end of 2021.3. What is the company’s projected benefit obligation at the end of 2021 with respect to Davenport?4. If no estimates are changed in the meantime, what will be the company’s projected benefit obligation at the end of…Sachs Brands’s defined benefit pension plan specifies annual retirement benefits equal to 1.6% × service years × final year’s salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2010 and is expected to retire at the end of 2044 after 35 years’ service. Her retirement is expected to span 18 years. Davenport’s salary is $90,000 at the end of 2024 and the company’s actuary projects her salary to be $240,000 at retirement. The actuary’s discount rate is 7%. At the beginning of 2025, changing economic conditions caused the actuary to reassess the applicable discount rate. It was decided that 8% is the appropriate rate. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Required: Calculate the effect of the change in the assumed discount rate on the PBO at the beginning of 2025 with respect to Davenport. Note: Do not round intermediate calculations. Round your final answer to…
- Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.6% × service years × final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2010 and is expected to retire at the end of 2044 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $90,000 at the end of 2024 and the company's actuary projects her salary to be $240,000 at retirement. The actuary's discount rate is 7%. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Required: 1.What is the company’s projected benefit obligation at the beginning of 2024 (after 14 years’ service) with respect to Davenport? Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar. 2.Estimate by the projected benefits approach the portion of Davenport’s annual retirement payments attributable to 2024…Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.5% × service years × final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2007 and is expected to retire at the end of 2041 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $88,000 at the end of 2021 and the company's actuary projects her salary to be $270,000 at retirement. The actuary's discount rate is 6%. At the beginning of 2022, changing economic conditions caused the actuary to reassess the applicable discount rate. It was decided that 7% is the appropriate rate. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required:Calculate the effect of the change in the assumed discount rate on the PBO at the beginning of 2022 with respect to Davenport. (Do not round intermediate calculations. Round your final answer to the…Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.2% × service years × final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2010 and is expected to retire at the end of 2044 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $80,000 at the end of 2024 and the company's actuary projects her salary to be $230,000 at retirement. The actuary's discount rate is 6%. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Required: What is the company's projected benefit obligation at the beginning of 2024 (after 14 years' service) with respect to Davenport? Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar. Estimate by the projected benefits approach the portion of Davenport's annual retirement payments attributable to 2024 service.…
