Manuel is an employee of the Etowah Corporation and has worked for the company for 22 years.

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Manuel is an employee of the Etowah Corporation and has worked for the company for 22 years. Employees are not required to make contributions to the company's defined benefit plan. Based on the plan, Manuel can retire at 40% of the average of his three highest years' salary. Determine the amount Etowah will pay Manual in pension benefits in each of the following situations:
a. His average salary for these three years is $50,000.
b. His average salary for these three years is $580,000.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Concepts In Federal Taxation 2017

ISBN: 9781305965119

24th Edition

Authors: Kevin E. Murphy, Mark Higgins

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