10. Sachs Brands defined benefit pension plan specifies annual retirement benefits equal to: 1.3% x service years x final years salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2004 and is expected to retire at the end of 2038 after 35 years service. Her retirement is expected to span 18 years. Davenports salary is $91,000 at the end of 2018 and the companys actuary projects her salary to be $285,000 at retirement. The actuarys discount rate is 9%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required:

1. What is the companys projected benefit obligation at the beginning of 2018 (after 14 years service) with respect to Davenport? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)
2. Estimate by the projected benefits approach the portion of Davenports annual retirement payments attributable to 2018 service.
3. What is the companys service cost for 2018 with respect to Davenport? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.
4. What is the companys interest cost for 2018 with respect to Davenport? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)
5. Combine your answers to requirements 1, 3, and 4 to determine the companys projected benefit obligation at the end of 2018 (after 15 years service) with respect to Davenport. (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

1	Project benefit obligation
2	Annual retirement payments
3	Service cost
4	Interest cost
5	Projected benefit obligation