Use the Defined Benefit Excel spreadsheet reviewed in class to answer this question. What is a retiree's current defined benefit amount based on the following information: Current Age 68 Average Salary = $90,000 Service Years = 15 Retirement Age 65 Multiplier = 1.75% Cost of Living Adjustment 2.50% O $23,625 $24,877 O $25,442 O $26,455
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- Joshua Company has a define contribution plan that covers its existing employees. The terms of the plan require Joshua to contribute 5% of the annual employee salaries to the retirement plan each year. The payroll shows the annual salaries and contributions made as follows: Year Gross Payroll Contributions made 2021 P670,000 670,000 2022 12.200,000 430,000 How much is the benefit expense in 2022 profit or loss and the amount of prepaid (accrued) benefit as of December 31, 2022? O P610,000 and P10,000 prepaid O P610,000 and P180,000 accrued OP430,000 and P10.000 prepaid OP430,000 and P180,000 accruedCHOOSE THE LETTER OF THE CORRECT ANSWER What is the employee benefit expense for the current year? a. 1,180,000b. 2,100,000c. 1,850,000d. 1,050,000 What is the remeasurement gain or loss on plan assets on Dec. 31? a. 670,000 gainb. 670,000 lossc. 650,000 gaind. 650,000 lossFind the net pay for each of the following employees after FICA, Medicare, federal withholding tax, state disability insurance, and other deductions have been taken out. Assume that none has earned over $130,000 so far this year. Assume a FICA rate of 6.2%, Medicare rate of 1.45%, and a state disability insurance rate of 1%. Use the percentage method of withholding. L. Soltero: $5410 monthly earnings, 1 withholding allowance, single, $47.80 in other deductions Mike Jennings: $4147.38 monthly earnings, 5 withholding allowances, married, union dues of $15, charitable contributions of $41.65, state withholding of $25.70 Carla Lorenz: $1468.25 weekly earnings, 4 withholding allowances, married, credit union savings of $18, charitable contributions of $10
- Calculate the Social Security and Medicare deduction for the following employee (assume a tax rate of 6.2% on $128,400 for Social Security and 1.45% for Medicare): (round your answer to the nearest cent.) Employee Cumulative Earnings before this pay period Pay Amount this Period Social Security Medicare Logan $128,300 $3,000An employer uses a career average formula to determine retirement payments to its employees. The annual retirement payout is 8 percent of the employees’ career average salary times the number of years of service. Calculate the annual benefit payment under the following scenarios. Years Worked Career Average Salary 27 $ 68,000 30 70,500 32 72,000Company A has established a defined benefit plan indicating a plan formula for annual benefit equal to 2% multiplied by the number of years in service multiplied by the final year’s salary. The annual benefit is payable at the end of each year. An employee was hired by the entity on January 1,2000 and expected to retire on December 31, 2044. The employee’s retirement is expected to span 21 years. The employee’s final salary at retirement is expected to be P800,000 and the appropriate discount rate is 8%. On January 1, 2020, the plan formula was amended by increasing the percentage from 2% to 3%. The amendment was made retroactive to consider past service years. Compute for the ff: 1)PBO, Jan 1, 2020 (before amendment), Jan 1, 2020 (after amendment), Dec. 31,2020, Dec. 31, 2021 and Dec. 31 2022 2)Past service cost, 2020, 2021 and 2022 3)Current service cost, 2020, 2021 and 2022 4)Interest expense, 2020, 2021 and 2022
- FMC Inc. provides its employees with a defined benefit pension plan. Details are as follows: Present value defined benefit obligation (DBO) — December 31, 2020 $7,000,000 Plan assets — December 31, 2020 $5,900,000 Plan’s actuary confirmed that 4% is the appropriate interest rate to use. Current service costs (CSC) for the year $590,000 Past service costs (PSC) (improvement in benefits) — January 1, 2020 $60,000 Expected ending DBO — December 31, 2020 $7,200,000 Expected ending plan assets — December 31, 2020 $6,500,000 Remitted to pension trustee — evenly throughout year $670,000 Payments to retirees — evenly throughout year $640,000 What journal entry should FMC prepare to record the remeasurement gains/losses and actuarial gains/losses for the year? Assume FMC reports under IFRS. Question 18 options: a) DR OCI — actuarial losses 200,000 DR OCI — losses on remeasurement of plan assets 600,000 CR Net defined benefit liability…Find the net pay for each of the following employees after FICA, Medicare, federal withholding tax, state disability insurance, and other deductions have been taken out. Assume that none has earned over $130,000 so far this year. Assume a FICA rate of 6.2% Medicare rate of 1.45% and a state disability insurance rate of 1%. Use the percentage method of withholding. 8. L. Soltero: $5410 monthly earnings, 1 withholding allowance, single, $47.80 in other deductions 9. Mike Jennings $4147.38 monthly earnings, 5 withholding allowances, mareied, union dues of $15, charitable contributions of $41.65, state withholding of $25.70 10. Carla Lorenz: $1468.25 weekly earnings, 4 withholding allowances, married, credit union savings of $18, charitable contributions of $10 Complete the following payroll ledger. Find the total gross earnings for each employee.he following information relates to the pension plan for the employees of Cullumber Co.: (See Image) Cullumber estimates that the average remaining service life is 16 years. Cullumber's contribution was $ 1213000 in 2021 and benefits paid were $ 877000.The actual return on plan assets in 2021 is a. $ 2011000. b. $ 1134000. c. $ 798000. d. $ 336000.
- Q1. Your employer uses a flat benefit formula to determine retirement payments to its employees. The fund pays an annual benefit of $2,500 per year of service. Calculate your annual benefit payment for 25, 28 and 30 years of service.The following data are available pertaining to Household Appliance Company's retiree health care plan for 2021: Number of employees covered 2 Years employed as of January 1, 2021 3 [each] Attribution period 20 years Expected postretirement benefit obligation, Jan. 1 $ 60,000 Expected postretirement benefit obligation, Dec. 31 $ 63,000 Interest rate 5 % Funding none Required:1. What is the accumulated postretirement benefit obligation at the beginning of 2021?2. What is interest cost to be included in 2021 postretirement benefit expense?3. What is service cost to be included in 2021 postretirement benefit expense?4. Prepare the journal entry to record the postretirement benefit expense for 2021.Teddy’s earned income was $54,000 in 2021 and $57,000 in 2022. How much can he contribute to his RRSP in 2022 given the following? Carry forward contribution room: $25,000 Pension adjustment: $6,000 Annual maximum: $29,210 Select one: a. $54,210 b. $28,720 c. $29,260 d. $48,210