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Question - Lazy Company has a define contribution plan that covers its existing employees. The terms of the plan required Lazy to contribute 5% of the annual employee salaries to the retirement plan each year. The payroll shows the annual salaries and contributions made as follows:
Year
Payroll
Contribution
2020
$7,500,000
$P300,000
2021
$8,200,000
$540,000
Required - How much is the benefit expense in 2021?
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