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Darrin Dunlap is the only employee of Lockment Company. which has a defined benefit pension plan. The plan promises an annual retirement benefit calculated as
Darrin Dunlap is the only employee of Lockment Company. which has a defined benefit pension plan. The plan promises an annual retirement benefit calculated as 2.3%n highest annual salary, where n is the number of years worked: pension benefits are paid at the end of each retirement year. As of January 1, 2022, Darrin has worked for Lockment for 14 years and is expected to retire after 23 more years. His retirement period is expected to be 24 years. Darrin's salary for 2021 was $93.000, and the estimate of his annual salary the year prior to his retirement is $169,000. Lockment's discount rate is 7%. Calculate the following amounts related to Darren's pension plan, showing your work and labeling your answers: (1) the January 1, 2022 projected benefit obligation: (2) the 2022 service cost, and (3) the 2022 interest cost
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