Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.5% x service years * final year's salar 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 e 2044 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $83,000 at the end of 2024 and t company's actuary projects her salary to be $245,000 at retirement. The actuary's discount rate is 9%. 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) Required: 2. Estimate by the accumulated benefits approach the amount of Davenport's annual retirement payments earned as of the en 2024. 3. What is the company's accumulated benefit obligation at the end of 2024 with respect to Davenport? Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar. 4. If no estimates are changed in the meantime, what will be the accumulated benefit obligation at the end of 2027 (three years later), when Davenport's salary is $92,000? Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar. Answer is not complete.
Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.5% x service years * final year's salar 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 e 2044 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $83,000 at the end of 2024 and t company's actuary projects her salary to be $245,000 at retirement. The actuary's discount rate is 9%. 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) Required: 2. Estimate by the accumulated benefits approach the amount of Davenport's annual retirement payments earned as of the en 2024. 3. What is the company's accumulated benefit obligation at the end of 2024 with respect to Davenport? Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar. 4. If no estimates are changed in the meantime, what will be the accumulated benefit obligation at the end of 2027 (three years later), when Davenport's salary is $92,000? Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar. Answer is not complete.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 4E
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