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Return to question Problem 17-4 Prior service cost; components of pension expense; present value concepts L017-3, 17-6 Sachs Brands' defined benefit pension plan specifies annual

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Return to question Problem 17-4 Prior service cost; components of pension expense; present value concepts L017-3, 17-6 Sachs Brands' defined benefit pension plan specifies annual retirement benefits equal to, 12% service years 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. Davenport's salary is at the end of 2018 and the company's actuary projects her salary to be $280,000 at retirement. The actuary's discount rate is 8%, orvosi. PV of$1. EVAof $1. PVAor $1. EVADorsl and PVADorsn (use appropriate factor(s) from the tables provided.) At the beginning of 2019, the pension formula was amended to: 1.35% 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 2019 with respect to Davenport after the amendment K Prev3 of 16 lNext > Return to question 3 Required: 1. What is the companys prior service cost at the beginning of 2019 with respect to Davenport after the amendment described above? 2. Since the amendment occurred at the beginning of 2019, amortization of the prior service cost begins in 2019 What is the prior service cost amortization that would be included in pension expense? 3. What is the service cost for 2019 with respect to Davenport? 4. What is the interest cost for 2019 with respect to Davenport? 5. Calculate pension expense for 2019 with respect to Davenport, assuming plan assets attibutable to her of $100,000 and a rate of return (actual and expected) of 10%. (For all requirements, do not round intermediate calculations. Round your final answers to nearest whole dollar.) 3 Answer is not complete. 1Prior service cost 2Prior service cos 3Service cost 7 5758 0766 3 C Prev3 of 16 Next Return to question , Leiculate pelision expense zur, wun especi w Davenport. assuming pian assets au ibutabie to nei oi > iO,000 and a rate of return (actual and expected) of 10% (For all requirements, do not round intermediate calculations. Round your finel answers to nearest whole dollar.) Answer is not complete. Prior service cost Prior service cost amortization 3 Service cost S 87,575 s 6,756 7,006 3,360 0 4 Interest cost 5 Pension expense

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