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PLEASE ONLY SUMBIT IF WRITE THIS IS MY 4th time sumbittting. IF correct i will give a thumbs up!! Sachs Brands's defined benefit pension plan
PLEASE ONLY SUMBIT IF WRITE THIS IS MY 4th time sumbittting. IF correct i will give a thumbs up!!
Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.6% service years final year's salary, Dayable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2010 and is expected to retire at the end of 2044 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $99,000 at the end of 2024 and the company's actuary projects her salary to be $325,000 at retirement. The actuary's discount rate is 9%. Vote: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of \$1) Required: 1. What is the company's projected benefit obligation at the beginning of 2024 (after 14 years' service) with respect to Davenport? Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar. 2. Estimate by the projected benefits approach the portion of Davenport's annual retirement payments attributable to 2024 service. 3. What is the company's service cost for 2024 with respect to Davenport? Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar. 4. What is the company's interest cost for 2024 with respect to Davenport? Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar. 5. Combine your answers to requirements 1, 3, and 4 to determine the company's projected benefit obligation at the end of 2024 (after 15 years' service) with respect to Davenport. Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar. Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.2% service years final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2010 and is expected to retire at the end of 2044 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $85,000 at the end of 2024 and the company's actuary projects her salary to be $255,000 at retirement. The actuary's discount rate is 7%. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1 ) At the beginning of 2025 , the pension formula was amended to: 1.30% Service years Final year's salary The amendment was made retroactive to apply the increased benefits to prior service years. Required: 1. What is the company's prior service cost at the beginning of 2025 with respect to Davenport after the amendment described above? 2. Since the amendment occurred at the beginning of 2025 , amortization of the prior service cost begins in 2025 . What is the prior service cost amortization that would be included in pension expense? 3. What is the service cost for 2025 with respect to Davenport? 4. What is the interest cost for 2025 with respect to Davenport? 5. Calculate pension expense for 2025 with respect to Davenport, assuming plan assets attributable to her of $150,000 and a rate of return (actual and expected) of 10%. Note: For all requirements, do not round intermediate calculations. Round your final answers to the nearest whole dollarStep by Step Solution
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