Question 1:

Required information Problem 13-54 (LO 13-1) (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 of 1.5 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 e (Algo) e. Javier works for DNL for 32 years and three months before retiring. Javier's annual salary was $200,000,$210,000, $217,000, and $225,000 for his final four years of employment. Note that in the year he retired, he didn't work for the entire year, so he received only a portion of the annual salary. EXHIBIT 13-1 Defined Benefit Plans Minimum Vesting Schedules* *Percent of employee benefit no longer subject to forfeiture. Source: Internal Revenue Service. "Title 26." www. govinfo.gov