Question: 33. Pendulum Enterprises has a defined benefit plan. Employees receive a pension equal to 2% of the average of the highest 5 years of salary

33.

Pendulum Enterprises has a defined benefit plan. Employees receive a pension equal to 2% of the average of the highest 5 years of salary and based on years of service. On December 31 2020, the fair value of the pension assets in the plan is $10.7 M, although pension contributions were in excess of $12.5 M, and the estimated pension obligation is $12.3M.

Mary-Lou is considering retirement but wants to know how much she is entitled to receive under this defined benefit plan. Her 5 years highest average earnings are $67,500 and she has 30 years of service. What is her annual pension benefit? (place value without a $ sign in the space below)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

16. Pendulum Enterprises has a defined benefit plan. Employees receive a pension equal to 2% of the average of the highest 5 years of salary and based on years of service. On December 31 2020, the...

1. Mergeron Industries purchases a new delivery van. The van costs $32,000 and is expected to last 5 years. The company uses straight-line depreciation for accounting purposes. The residual value is...

1. Below is the financial data pertaining to Printcraft Inc.: 2020 2021 2022 Accounts Payable 22,500 17,500 15,450 COGS 102,750 98,000 96,450 Beg. Inv 130,000 121,750 101,500 End. Inv 121,750 101,500...

Q Attached are 10 questions that need to be answeredfrom the information form the Case Study.Please DO NOT use the sameanswers that have been answered on this site already, because they are wrong!I...

Selected transactions completed by Kornett Company during its first fiscal year ended December 31, 2016, were as follows: Jan. 3 Issued a check to establish a petty cash fund of $4,500. Feb. 26...

Page view AN Don and Jean Assignment Instructions Part 1: Goals, Cash Flow and Net Worth Note: This report should be professionally completed, as if you were to presenting it Don and Jean. Use...

Please show work and answer all 4 questions. You and your spouse have each turned 60 and you are thinking of retiring. You have also been talking with your neighbors who also turned 60 and are...

Show work. You and your spouse have each turned 60 and you are thinking of retiring. You have also been talking with your neighbors who also turned 60 and are thinking of retiring. Your neighbors are...

A defined benefit pension plan specifies annual retirement benefits equal to 1.3%service yearsfinal year's salary , payable at the end of each year. An employee with 18 years of service is expected...

Kieu Corporation constructs a new warehouse. It pays $100,000 for materials and $70,000 to the general contractor. Architectural fees total $18,000. The corporation pays $13,000 in interest on its...

How might a firms corporate WACC be affected by the size of its capital budget?

Adjusting entries to record unearned items typically consist of: Multiple select question. Asset account Revenue account Equity account Liability Expense account

Wilma Company must decide whether to make or buy some of its components.The costs of producing 60,200 switches for its generators are as follows Direct materials $29,500 Variable overhead $45,800...