Jan honore owner current annual salary of 48000 estimated

Assignment Help Accounting Basics

Reference no: EM13588739

You have been hired as a benefit consultant by Jean Honore, the owner of Attic Angels. She wants to establish a retirement plan for herself and her three employees. Jean has provided the following information: The retirement plan is to be based upon annual salary for the last year before retire- ment and is to provide 50% of Jean's last-year annual salary and 40% of the last-year annual salary for each employee. The plan will make annual payments at the beginning of each year for 20 years from the date of retirement. Jean wishes to fund the plan by making 15 annual deposits beginning January 1, 2012. Invested funds will earn 12% compounded annually. Information about plan participants as of January 1, 2012, is as follows.

Jean Honore, owner: Current annual salary of $48,000; estimated retirement date January 1, 2037. Colin Davis, flower arranger: Current annual salary of $36,000; estimated retirement date January 1, 2042.
page385image49936

Anita Baker, sales clerk: Current annual salary of $18,000; estimated retirement date January 1, 2032. Gavin Bryars, part-time bookkeeper: Current annual salary of $15,000; estimated retirement date January 1, 2027.

In the past, Jean has given herself and each employee a year-end salary increase of 4%. Jean plans to con- tinue this policy in the future.

Instructions

(a) Basedupontheaboveinformation,whatwillbetheannualretirementbenefitforeachplanpartici- pant?

(b) What amount must be on deposit at the end of 15 years to ensure that all benefits will be paid?

Reference no: EM13588739

Questions Cloud

Axle and wheel manufacturing currently produces and sells : axle and wheel manufacturing currently produces and sells 1000 axles per month. its revenue is 125000 per month. the

Actual quantity 840 kg standard price 48 per kg standard : actual quantity 840 kg standard price 48 per kg standard quantity requirement of material 800 kg actual price 52 per kg

The june 1 work in process inventory consisted of 5000 : lopack company manufactures one product that goes through one processing department called mixing. all raw materials

A man scientist decides to build a machine that will use a : a man scientist decides to build a machine that will use a 0.5 tesla magnetic field to make electrons charge 1.6 x

Jan honore owner current annual salary of 48000 estimated : you have been hired as a benefit consultant by jean honore the owner of attic angels. she wants to establish a

A 680 h inductor with negligible resistance is connected : question a 6.80 h inductor with negligible resistance is connected across an ac source whose voltage amplitude is kept

Research the following questions and give authoritative : research the following questions and give authoritative support for your answer1. the accounting supervisor of

Using t accounts for materials inventory work in process : on may 31 the inventory balances of princess designs a manufacturer of high-quality childrens clothing were as follows

A container is filled to a depth of 220 cm with water on : a container is filled to a depth of 22.0 cm with water. on top of the water floats a 28.0-cm-thick layer of oil with

User Account

All Pages