McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 4

Alicia has been working for JMM Corp.for 32 years.Alicia participates in JMM's defined benefit plan.Under the plan, for every year of service for JMM she is to receive 2 percent of the average salary of her three highest years of compensation from JMM.She retired on January 1, 2011.Before retirement, her annual salary was $570,000, $600,000, and $630,000 for 2008, 2009, and 2010.What is the maximum benefit Alicia can receive in 2011?