Joan Recently Started Her Career with PDEK Accounting, LLP Which

question 34

Essay

Joan recently started her career with PDEK Accounting, LLP which provides a defined benefit plan for all employees. Employees receive 1.5 percent of the average of their three highest annual salaries for each full year of service. Plan benefits vest under a 5-year cliff schedule. Joan worked 5½ years at PDEK before leaving for another opportunity. She received an annual salary of $49,000, $52,000, $58,000, $65,000, and $75,000 for years one through five respectively. Joan earned $40,000 of her $80,000 annual salary in year six. What is the vested benefit Joan is entitled to receive from PDEK for her retirement? Use Exhibit 13-1

---

Definitions:

Classical Conditioning

The process of acquiring knowledge by forming connections between a stimulus found in the surroundings and one that arises on its own, which leads to the development of a learned reaction.

Reinforcement

In behavioral psychology, a process that increases the likelihood of a behavior by applying a stimulus after the behavior is exhibited.

Reinforcers

Stimuli that, when presented after a behavior, increase the likelihood of that behavior being repeated.

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention until it is paired with an unconditioned stimulus.