Ascertain whether each of the following independent statements is best applied to a defined contribution plan (DCP), a defined benefit plan (DBP), Both (B), or neither (N).

Question

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Answer 1

Question

Chapter 19, Problem 1DQ

To determine

Ascertain whether each of the following independent statements is best applied to a defined contribution plan (DCP), a defined benefit plan (DBP), Both (B), or neither (N).

Expert Solution & Answer

Explanation of Solution

Defined contribution plans: In a defined contribution plan, the additions made to an employee’s account annually cannot exceed the lesser;

“$56,000 (during 2019)”, (or)
“100 percent of the compensation made by the employees”.

Defined Benefit plans: In a defined benefit plan, the annual benefit paid to an employee is restricted to the lesser of the following;

“$225,000 (in 2019)” or
“100% of the average compensation for the highest three years of employment”.

Ascertain whether each of the following independent statements is best applied to a defined contribution plan (DCP), a defined benefit plan (DBP), Both (B), or neither (N).

Serial Number	Applied to the best of
a.	DBP.
b.	DCP.
c.	DBP.
d.	N.
e.	DBP.
f.	B.
g.	N.
h.	DCP.
i.	DCP.
j.	DBP.

Table (1)

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Students have asked these similar questions

Which of the following characteristics is/are indicative of a post-employment defined contribution plan? If actuarial or investment experience are worse than expected, the entity’s obligation may be increased. The amount to be received by the employee is determined by the amount of contributions paid by an entity to the plan, with investment returns arising from the contributions. The entity’s obligation is to provide the agreed benefits to current and former employees. The entity’s legal or constructive obligation is limited to the amount that it agrees to contribute to the fund. Group of answer choices Only statements 1 and 2. Only statements 2 and 3. Only statements 2 and 4. Only statements 3 and 4.

Which of the following does not describe a defined contribution plan? The employer bears the risk of investment in a defined contribution plan. The contribution is certain but the benefit is uncertain. If the plan does poorly, the employee will share in the loss by paying more contributions. The accumulated fund on the date of an employee’s retirement determines the benefit.

It is a type of retirement plan where the benefit to be received by the employee is dependent on the contributions made to the plan and on the investment performance of the plan. The risk that the benefits to be received may be insufficient is retained by the employee. a. Defined contribution plan b. Defined benefit plan c. none of the above d. a or b

Answer 2

Question

Chapter 19, Problem 1DQ

To determine

Ascertain whether each of the following independent statements is best applied to a defined contribution plan (DCP), a defined benefit plan (DBP), Both (B), or neither (N).

Expert Solution & Answer

Explanation of Solution

Defined contribution plans: In a defined contribution plan, the additions made to an employee’s account annually cannot exceed the lesser;

“$56,000 (during 2019)”, (or)
“100 percent of the compensation made by the employees”.

Defined Benefit plans: In a defined benefit plan, the annual benefit paid to an employee is restricted to the lesser of the following;

“$225,000 (in 2019)” or
“100% of the average compensation for the highest three years of employment”.

Ascertain whether each of the following independent statements is best applied to a defined contribution plan (DCP), a defined benefit plan (DBP), Both (B), or neither (N).

Serial Number	Applied to the best of
a.	DBP.
b.	DCP.
c.	DBP.
d.	N.
e.	DBP.
f.	B.
g.	N.
h.	DCP.
i.	DCP.
j.	DBP.

Table (1)

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Answer 3

Question

Chapter 19, Problem 1DQ

To determine

Ascertain whether each of the following independent statements is best applied to a defined contribution plan (DCP), a defined benefit plan (DBP), Both (B), or neither (N).

Expert Solution & Answer

Explanation of Solution

Defined contribution plans: In a defined contribution plan, the additions made to an employee’s account annually cannot exceed the lesser;

“$56,000 (during 2019)”, (or)
“100 percent of the compensation made by the employees”.

Defined Benefit plans: In a defined benefit plan, the annual benefit paid to an employee is restricted to the lesser of the following;

“$225,000 (in 2019)” or
“100% of the average compensation for the highest three years of employment”.

Ascertain whether each of the following independent statements is best applied to a defined contribution plan (DCP), a defined benefit plan (DBP), Both (B), or neither (N).

Serial Number	Applied to the best of
a.	DBP.
b.	DCP.
c.	DBP.
d.	N.
e.	DBP.
f.	B.
g.	N.
h.	DCP.
i.	DCP.
j.	DBP.

Table (1)

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Answer 4

Question

Chapter 19, Problem 1DQ

To determine

Ascertain whether each of the following independent statements is best applied to a defined contribution plan (DCP), a defined benefit plan (DBP), Both (B), or neither (N).

Expert Solution & Answer

Explanation of Solution

Defined contribution plans: In a defined contribution plan, the additions made to an employee’s account annually cannot exceed the lesser;

“$56,000 (during 2019)”, (or)
“100 percent of the compensation made by the employees”.

Defined Benefit plans: In a defined benefit plan, the annual benefit paid to an employee is restricted to the lesser of the following;

“$225,000 (in 2019)” or
“100% of the average compensation for the highest three years of employment”.

Ascertain whether each of the following independent statements is best applied to a defined contribution plan (DCP), a defined benefit plan (DBP), Both (B), or neither (N).

Serial Number	Applied to the best of
a.	DBP.
b.	DCP.
c.	DBP.
d.	N.
e.	DBP.
f.	B.
g.	N.
h.	DCP.
i.	DCP.
j.	DBP.

Table (1)

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Answer 5

Chapter 19, Problem 1DQ

To determine

Ascertain whether each of the following independent statements is best applied to a defined contribution plan (DCP), a defined benefit plan (DBP), Both (B), or neither (N).

Expert Solution & Answer

Explanation of Solution

Defined contribution plans: In a defined contribution plan, the additions made to an employee’s account annually cannot exceed the lesser;

“$56,000 (during 2019)”, (or)
“100 percent of the compensation made by the employees”.

Defined Benefit plans: In a defined benefit plan, the annual benefit paid to an employee is restricted to the lesser of the following;

“$225,000 (in 2019)” or
“100% of the average compensation for the highest three years of employment”.

Ascertain whether each of the following independent statements is best applied to a defined contribution plan (DCP), a defined benefit plan (DBP), Both (B), or neither (N).

Serial Number	Applied to the best of
a.	DBP.
b.	DCP.
c.	DBP.
d.	N.
e.	DBP.
f.	B.
g.	N.
h.	DCP.
i.	DCP.
j.	DBP.

Table (1)

Answer 6

Chapter 19, Problem 1DQ

To determine

Ascertain whether each of the following independent statements is best applied to a defined contribution plan (DCP), a defined benefit plan (DBP), Both (B), or neither (N).

Expert Solution & Answer

Explanation of Solution

Defined contribution plans: In a defined contribution plan, the additions made to an employee’s account annually cannot exceed the lesser;

“$56,000 (during 2019)”, (or)
“100 percent of the compensation made by the employees”.

Defined Benefit plans: In a defined benefit plan, the annual benefit paid to an employee is restricted to the lesser of the following;

“$225,000 (in 2019)” or
“100% of the average compensation for the highest three years of employment”.

Ascertain whether each of the following independent statements is best applied to a defined contribution plan (DCP), a defined benefit plan (DBP), Both (B), or neither (N).

Serial Number	Applied to the best of
a.	DBP.
b.	DCP.
c.	DBP.
d.	N.
e.	DBP.
f.	B.
g.	N.
h.	DCP.
i.	DCP.
j.	DBP.

Table (1)

Answer 7

Chapter 19, Problem 1DQ

To determine

Ascertain whether each of the following independent statements is best applied to a defined contribution plan (DCP), a defined benefit plan (DBP), Both (B), or neither (N).

Answer 8

Expert Solution & Answer

Explanation of Solution

Defined contribution plans: In a defined contribution plan, the additions made to an employee’s account annually cannot exceed the lesser;

“$56,000 (during 2019)”, (or)
“100 percent of the compensation made by the employees”.

Defined Benefit plans: In a defined benefit plan, the annual benefit paid to an employee is restricted to the lesser of the following;

“$225,000 (in 2019)” or
“100% of the average compensation for the highest three years of employment”.

Ascertain whether each of the following independent statements is best applied to a defined contribution plan (DCP), a defined benefit plan (DBP), Both (B), or neither (N).

Serial Number	Applied to the best of
a.	DBP.
b.	DCP.
c.	DBP.
d.	N.
e.	DBP.
f.	B.
g.	N.
h.	DCP.
i.	DCP.
j.	DBP.

Table (1)

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 19 - Prob. 1DQ Ch. 19 - Prob. 2DQ Ch. 19 - Prob. 3DQ Ch. 19 - Prob. 4DQ Ch. 19 - Prob. 5DQ Ch. 19 - Prob. 6DQ Ch. 19 - Prob. 7DQ Ch. 19 - Prob. 8DQ Ch. 19 - Prob. 9DQ Ch. 19 - Prob. 10DQ

Ascertain whether each of the following independent statements is best applied to a defined contribution plan (DCP), a defined benefit plan (DBP), Both (B), or neither (N).

Ascertain whether each of the following independent statements is best applied to a defined contribution plan (DCP), a defined benefit plan (DBP), Both (B), or neither (N).

Explanation of Solution

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Chapter 19 Solutions