INT.ACCT. LL W/CONNECT+PROCTORIO PLUS
10th Edition
ISBN: 9781266374395
Author: SPICELAND
Publisher: MCG
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Chapter 17, Problem 17.1DMP
(1)
To determine
Pension plan: This is the plan devised by corporations to pay the employees an income after their retirement, in the form of pension.
To determine: The annual retirement benefits estimated by the actuary, assumed to be earned by the employee at the end of 2018, and compute present value of the retirement annuity of $21,600 (From Requirement 2) as on retirement date, 2057
(2)
To determine
The future value of plan assets as at the retirement date, 2057, and determine present value of annual retirement, if investments pay 6% return
(3)
To determine
To explain: The plan to be chosen, and discuss the factors that should be considered to choose the best plan
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4-11A • LO 1
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Exercise 12A-2 Basic Present Value Concepts [LO12-7]
Julie has just retired. Her company's retirement program has two options as to how retirement benefits can be received. Under the
first option, Julie would receive a lump sum of $142,000 immediately as her full retirement benefit. Under the second option, she
would receive $21,000 each year for 5 years plus a lump-sum payment of $61,000 at the end of the 5-year period.
Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables.
Required:
1-a. Calculate the present value for the following assuming that the money can be invested at 14%.
1-b. If she can invest money at 14%, which option would you recommend that she accept?
Complete this question by entering your answers in the tabs below.
Req 1A
Req 1B
Calculate the present value for the following assumir that the money can be invested at 14%. (Round your final answers to
the nearest whole dollar amount.)
Option 1
Option 2
Present…
Chapter 17 Solutions
INT.ACCT. LL W/CONNECT+PROCTORIO PLUS
Ch. 17 - Prob. 17.1QCh. 17 - Prob. 17.2QCh. 17 - Prob. 17.3QCh. 17 - What is the vested benefit obligation?Ch. 17 - Prob. 17.5QCh. 17 - Prob. 17.6QCh. 17 - Name three events that might change the balance of...Ch. 17 - Prob. 17.8QCh. 17 - Prob. 17.9QCh. 17 - Prob. 17.10Q
Ch. 17 - The return on plan assets is the increase in plan...Ch. 17 - Define prior service cost. How is it reported in...Ch. 17 - Prob. 17.13QCh. 17 - Is a companys PBO reported in the balance sheet?...Ch. 17 - What two components of pension expense may be...Ch. 17 - Prob. 17.16QCh. 17 - Evaluate this statement: The excess of the actual...Ch. 17 - Prob. 17.18QCh. 17 - TFC Inc. revises its estimate of future salary...Ch. 17 - Prob. 17.20QCh. 17 - Prob. 17.21QCh. 17 - Prob. 17.22QCh. 17 - The components of postretirement benefit expense...Ch. 17 - The EPBO for Branch Industries at the end of 2018...Ch. 17 - Prob. 17.25QCh. 17 - Prob. 17.26QCh. 17 - Prob. 17.1BECh. 17 - Prob. 17.2BECh. 17 - Prob. 17.3BECh. 17 - Prob. 17.4BECh. 17 - Prob. 17.5BECh. 17 - Prob. 17.6BECh. 17 - Prob. 17.7BECh. 17 - Prob. 17.8BECh. 17 - Prob. 17.9BECh. 17 - Prob. 17.10BECh. 17 - Net gain LO176 The projected benefit obligation...Ch. 17 - Prob. 17.12BECh. 17 - Prob. 17.13BECh. 17 - Postretirement benefits; determine the APBO and...Ch. 17 - Prob. 17.1ECh. 17 - Prob. 17.3ECh. 17 - Prob. 17.4ECh. 17 - Prob. 17.5ECh. 17 - Prob. 17.6ECh. 17 - Prob. 17.7ECh. 17 - Prob. 17.8ECh. 17 - Prob. 17.9ECh. 17 - Prob. 17.14ECh. 17 - Prob. 17.17ECh. 17 - Prob. 17.23ECh. 17 - Prob. 17.32ECh. 17 - Prob. 17.33ECh. 17 - Prob. 17.1DMPCh. 17 - Prob. 17.2DMPCh. 17 - Prob. 17.3DMPCh. 17 - Prob. 17.5DMPCh. 17 - Prob. 17.6DMPCh. 17 - Prob. 17.8DMPCh. 17 - Prob. 17.9DMPCh. 17 - Prob. 17.11DMPCh. 17 - Prob. 1CCTCCh. 17 - Prob. 2CCTC
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