Sachs Brands' defined benefit pension plan specifies annual retirement benefits equal to 1 % service years x f a 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 $81,000 at the end of 2018 and the company's actuary projects her salary to be $235,000 at retirement. The actuary's discount rate is 7% (EVOSI, Pyors. BAofSt PVA of S1. FVAD of S1 and PVAD of S) (Use appropriate factorfs) from the tables provided.) At the beginning of 2019, the pension formula was amended to 1.50% Service years x Final year's salary The amendment was made retroactive to apply the increased benefits to prior service years. Required: 1. What is the company' 2. s prio r service cost at the beginning of 2019 with respect to Davenport after the amendment described above? begins in 2019. What is the prior Since the amendment occurred at the beginning of 2019, amortization of the prior service cost 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? te pension expense for 2019 with respect to Davenport, assuming plan assets attributable to her of $170000 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) 1 Prior service cost 2 Prior service cost amortization 3 Service cost 4 Interest cost 5 Pension expense Sachs Brands' defined benefit pension plan specifies annual retirement benefits equal to 1 % service years x f a 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 $81,000 at the end of 2018 and the company's actuary projects her salary to be $235,000 at retirement. The actuary's discount rate is 7% (EVOSI, Pyors. BAofSt PVA of S1. FVAD of S1 and PVAD of S) (Use appropriate factorfs) from the tables provided.) At the beginning of 2019, the pension formula was amended to 1.50% Service years x Final year's salary The amendment was made retroactive to apply the increased benefits to prior service years. Required: 1. What is the company' 2. s prio r service cost at the beginning of 2019 with respect to Davenport after the amendment described above? begins in 2019. What is the prior Since the amendment occurred at the beginning of 2019, amortization of the prior service cost 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? te pension expense for 2019 with respect to Davenport, assuming plan assets attributable to her of $170000 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) 1 Prior service cost 2 Prior service cost amortization 3 Service cost 4 Interest cost 5 Pension expense
