Problem $13-54(LO13-1)(Algo)$

$[The$ following information applies $to$ the questions displayed below.$]$

Javier recently graduated and started his career with $DNL$ Incorporated. $DNL$ provides a defined benefit plan $to$ all

employees. According $to$ the terms $of$ the plan, for each full year $of$ service working for the employer, employees receive $a$

benefit $of1\mathrm{.}5$ percent $of$ their average salary over their highest three years $of$ compensation from the company. Employees

may accrue only $30$ years $of$ benefit under the plan $(45$ percent$).$

Determine Javier's annual benefit $on$ retirement, before taxes, under each $of$ the following scenarios $(Use$ Exhibit $13-1)$:

Note: $Do$ not round intermediate calculations. Round your final answers $to$ the nearest whole dollar amount. Leave $no$

answers blank. Enter zero $if$ applicable.

Problem $13-54$ Part $a(Algo)$

$a.$ Javier works for $DNL$ for three years and three months before $he$ leaves for another job. Javier's annual salary was $$62,000,$

$$72,000,$$$78,400,$ and $$81,800$ for years $1,2,3,$ and $4,$ respectively. $DNL$ uses a five$-$year cliff vesting schedule.

Annual before$-$tax benefit

$b.$ Javier works for $DNL$ for three years and three months before $he$ leaves for another job. Javier's annual salary was $$62,000,$

$$72,000,$$$78,400,$ and $$81,800$ for years $1,2,3,$ and $4,$ respectively. $DNL$ uses a seven$-$year graded vesting schedule.

Annual before$-$tax benefit $c.$ Javier works for $DNL$ for six years and three months before $he$ leaves for another job. Javier's annual salary was $$89,000,$ $$99,000,$

$$105,400,$ and $$111,100$ for years $4,5,6,$ and $7,$ respectively. $DNL$ uses a five$-$year cliff vesting schedule.

Annual before$-$tax benefit $d.$ Javier works for $DNL$ for six years and three months before $he$ leaves for another job. Javier's annual salary was $$89,000,$ $$99,000,$

$$105,400,$ and $$111,100$ for years $4,5,6,$ and $7,$ respectively. $DNL$ uses a seven$-$year graded vesting schedule.$e.$ Javier works for $DNL$ for $32$ years and three months before retiring. Javier's annual salary was $$192,500,$ $$202,500,$ $$208,900,$ and

$$216,000$ for his final four years $of$ employment. Note that $in$ the year $he$ retired $he$ didn't work for the entire year, $sohe$ received only

a portion $of$ the annual salary for that year.

Annual before$-$tax benefit