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Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1 . 5 % service years final year's salary, payable at the end
Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to service years final year's salary,
payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of and is expected to retire at the end of
after years' service. Her retirement is expected to span years. Davenport's salary is $ at the end of and the
company's actuary projects her salary to be $ at retirement. The actuary's discount rate is
Note: Use tables, Excel, or a financial calculator. FV of $ PV of $ FVA of $ PVA of $ FVAD of $ and PVAD of $
Required:
What is the company's projected benefit obligation at the beginning of after years' service with respect to Davenport?
Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar.
Estimate by the projected benefits approach the portion of Davenport's annual retirement payments attributable to service.
What is the company's service cost for with respect to Davenport?
Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar.
What is the company's interest cost for with respect to Davenport?
Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar.
Combine your answers to requirements and to determine the company's projected benefit obligation at the end of after
years' service with respect to Davenport.
Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar.StanleyMorgan Industries adopted a defined benefit pension plan on April The provisions of the plan were not made
retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to earn a rate of return. The
actual return was also in and A consulting firm, engaged as actuary, recommends as the appropriate discount
rate. The service cost is $ for and $ for Yearend funding is $ for and $ for
No assumptions or estimates were revised during
We assume the estimated return was based on the actual return on similar investments at the inception of the plan and that, since the
estimate didn't change, that also was the actual rate in
Required:
Calculate each of the following amounts as of both December and December :
Note: Enter your answers in thousands ie should be entered as Enter a liability as a negative amount.
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