Katrina's executive compensation package allows her to participate in the company's nonqualified deferred compensation plan. In the current year, Katrina defers 15 percent of her $300,000 salary. Katrina's deemed investment choice will earn 8 percent annually on the deferred compensation until she takes a lump-sum distribution in 10 years. Katrina's current marginal tax rate is 32 percent and she expects her marginal tax rate to be 28 percent upon receipt on the deferred salary. What is her after-tax accumulation from the deferred salary in 10 years? (Round future value factors to five decimal places and the future value and final answers to the nearest whole number.)
Correct Answer:
Verified
$45,000 ($300,000 × 15...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q123: Sean (age 72 at end of 2020)retired
Q124: Sean (age 71 at end of 2020)retired
Q125: Sean (age 74 at end of 2020)retired
Q126: In 2020, Madison is a single taxpayer
Q127: In 2020, Tyson (age 52)earned $50,000 of
Q129: Katrina's executive compensation package allows her to
Q130: Sean (age 74 at end of 2020)retired
Q131: Carmello and Leslie (ages 34 and 35,
Q132: Sean (age 74 at end of 2020)retired
Q133: Carmello and Leslie (ages 34 and 35,
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents