ems e connect (Note: Problems 1-5 are variations of the same situation, designed to focus on different elements of the pension plan.) Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.6% x service years ons; x final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning - of 2007 and is expected to retire at the end of 2041 after 35 years' service. Her retirement is expected to span 17-3 32 SECTION 3 Liabilities and Shareholders' Equity 18 years. Davenport's salary is $90,000 at the end of 2021 and the company's actuary projects her salary to be $240,000 at retirement. The actuary's discount rate is 7%. Required: 1. Draw a time line that depicts Davenport's expected service period, retirement period, and a 2021 measure- ment date for the pension obligation. 2. Estimate by the accumulated benefits approach the amount of Davenport's annual retirement payments earned as of the end of 2021. 3. What is the company's accumulated benefit obligation at the end of 2021 with respect to Davenport? 4. If no estimates are changed in the meantime, what will be the accumulated benefit obligation at the end of 2024 (three years later), when Davenport's salary is $100,000? final matinament henefits equal to 1.6% X service vears X ems e connect (Note: Problems 1-5 are variations of the same situation, designed to focus on different elements of the pension plan.) Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.6% x service years ons; x final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning - of 2007 and is expected to retire at the end of 2041 after 35 years' service. Her retirement is expected to span 17-3 32 SECTION 3 Liabilities and Shareholders' Equity 18 years. Davenport's salary is $90,000 at the end of 2021 and the company's actuary projects her salary to be $240,000 at retirement. The actuary's discount rate is 7%. Required: 1. Draw a time line that depicts Davenport's expected service period, retirement period, and a 2021 measure- ment date for the pension obligation. 2. Estimate by the accumulated benefits approach the amount of Davenport's annual retirement payments earned as of the end of 2021. 3. What is the company's accumulated benefit obligation at the end of 2021 with respect to Davenport? 4. If no estimates are changed in the meantime, what will be the accumulated benefit obligation at the end of 2024 (three years later), when Davenport's salary is $100,000? final matinament henefits equal to 1.6% X service vears X
