1. Draw a time line that depicts Davenport's expected service period, retirement period, and a 2024 measurement date for the pension obligation. 2. Estimate by the accumulated benefits approach the amount of Davenport's annual retirement payments earned as of the end of 2024. 3. What is the company's accumulated benefit obligation at the end of 2024 with respect to Davenport?
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- Sachs Brands defined benefit pension plan specifies annual retirement benefits equal to: 1.6% × service years× final year’s salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginningof 2004 and is expected to retire at the end of 2038 after 35 years’ service. Her retirement is expected to span18 years. Davenport’s salary is $90,000 at the end of 2018 and the company’s actuary projects her salary to be$240,000 at retirement. The actuary’s discount rate is 7%.At the beginning of 2019, the pension formula was amended to:1.75% × Service years × Final year’s salaryThe 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 described above?2. Since the amendment occurred at the beginning of 2019, amortization of the prior service cost begins in2019. What is the prior service cost amortization that would be…Sachs Brands defined benefit pension plan specifies annual retirement benefits equal to: 1.6% × service years× final year’s salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginningof 2004 and is expected to retire at the end of 2038 after 35 years’ service. Her retirement is expected to span18 years. Davenport’s salary is $90,000 at the end of 2018 and the company’s actuary projects her salary to be$240,000 at retirement. The actuary’s discount rate is 7%.Required:1. Draw a time line that depicts Davenport’s expected service period, retirement period, and a 2018 measurement date for the pension obligation.2. Estimate by the projected benefits approach the amount of Davenport’s annual retirement payments earned asof the end of 2018.3. What is the company’s projected benefit obligation at the end of 2018 with respect to Davenport?4. If no estimates are changed in the meantime, what will be the company’s projected benefit obligation at theend of 2021…Sachs Brands defined benefit pension plan specifies annual retirement benefits equal to: 1.6% × service years× final year’s salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginningof 2004 and is expected to retire at the end of 2038 after 35 years’ service. Her retirement is expected to span18 years. Davenport’s salary is $90,000 at the end of 2018 and the company’s actuary projects her salary to be$240,000 at retirement. The actuary’s discount rate is 7%.At the beginning of 2019, changing economic conditions caused the actuary to reassess the applicable discount rate. It was decided that 8% is the appropriate rate.Required:Calculate the effect of the change in the assumed discount rate on the PBO at the beginning of 2019 with respectto Davenport.
- Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.3% x service years * final year's salary, 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 end of 2044 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $87,000 at the end of 2024 and the company's actuary projects her salary to be $265,000 at retirement. The actuary's discount rate is 9%. At the beginning of 2025, changing economic conditions caused the actuary to reassess the applicable discount rate. It was decided that 10% is the appropriate rate. 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: Calculate the effect of the change in the assumed discount rate on the PBO at the beginning of 2025 with respect to Davenport. Note: Do not round intermediate calculations. Round your final answer to…Sachs Brands’ defined benefit pension plan specifies annual retirement benefits equal to: 1.6% * serviceyears * final year’s salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginningof 2002 and is expected to retire at the end of 2036 after 35 years’ service. Her retirement is expected tospan 18 years. Davenport’s salary is $90,000 at the end of 2016 and the company’s actuary projects her salary tobe $240,000 at retirement. The actuary’s discount rate is 7%.Required:1. Draw a time line that depicts Davenport’s expected service period, retirement period, and a 2016 measurementdate for the pension obligation.2. Estimate by the accumulated benefits approach the amount of Davenport’s annual retirement payments earnedas of the end of 2016.3. What is the company’s accumulated benefit obligation at the end of 2016 with respect to Davenport?4. If no estimates are changed in the meantime, what will be the accumulated benefit obligation at the end of2019…Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.2% * service years x final year's salary, 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 end of 2044 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $95,000 at the end of 2024 and the company's actuary projects her salary to be $305,000 at retirement. The actuary's discount rate is 9%. At the beginning of 2025, changing economic conditions caused the actuary to reassess the applicable discount rate. It was decided that 10% is the appropriate rate. Note: Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. FVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) Required: Calculate the effect of the change in the assumed discount rate on the PBO at the beginning of 2025 with respect to Davenport. Note: Do not round intermediate calculations. Round your final answer to…
- Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.2% x service years × final year's salary, 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 end of 2044 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $90,000 at the end of 2024 and the company's actuary projects her salary to be $280,000 at retirement. The actuary's discount rate is 8%. 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: 1. What is the company's projected benefit obligation at the beginning of 2024 (after 14 years' service) with respect to Davenport? Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar. 2. Estimate by the projected benefits approach the portion of Davenport's annual retirement payments attributable to 2024 service. 3.…Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.5% x service years* final year's salary, 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 end of 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 the 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 end of 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…Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.6% * service years x final year's salary, 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 end of 2044 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $89,000 at the end of 2024 and the company's actuary projects her salary to be $275,000 at retirement. The actuary's discount rate is 7%. At the beginning of 2025, changing economic conditions caused the actuary to reassess the applicable discount rate. It was decided that 8% is the appropriate rate. 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: Calculate the effect of the change in the assumed discount rate on the PBO at the beginning of 2025 with respect to Davenport. Note: Do not round intermediate calculations. Round your final answer to…
- Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.3% * service years x final year's salary, 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 end of 2044 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $87,000 at the end of 2024 and the company's actuary projects her salary to be $265,000 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: 1. What is the company's projected benefit obligation at the beginning of 2024 (after 14 years' service) with respect to Davenport? Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar. 2. Estimate by the projected benefits approach the portion of Davenport's annual retirement payments attributable to 2024 service. 3.…Sachs Brands’ defined benefit pension plan specifies annual retirement benefits equal to: 1.6% * service years * final year’s salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2002 and is expected to retire at the end of 2036 after 35 years’ service. Her retirement is expected to span 18 years. Davenport’s salary is $90,000 at the end of 2016 and the company’s actuary projects her salary to be $240,000 at retirement. The actuary’s discount rate is 7%. Required: 1. Draw a time line that depicts Davenport’s expected service period, retirement period, and a 2016 measurement date for the pension obligation. 2. Estimate by the projected benefits approach the amount of Davenport’s annual retirement payments earned as of the end of 2016. 3. What is the company’s projected benefit obligation at the end of 2016 with respect to Davenport? 4. If no estimates are changed in the meantime, what will be the company’s projected benefit obligation at the…Sachs Brands’ defined benefit pension plan specifies annual retirement benefits equal to: 1.6% * service years * final year’s salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2002 and is expected to retire at the end of 2036 after 35 years’ service. Her retirement is expected to span 18 years. Davenport’s salary is $90,000 at the end of 2016 and the company’s actuary projects her salary to be $240,000 at retirement. The actuary’s discount rate is 7%. Required: 1. What is the company’s projected benefit obligation at the beginning of 2016 (after 14 years’ service) with respect to Davenport? 2. Estimate by the projected benefits approach the portion of Davenport’s annual retirement payments attributable to 2016 service. 3. What is the company’s service cost for 2016 with respect to Davenport? 4. What is the company’s interest cost for 2016 with respect to Davenport? 5. Combine your answers to requirements 1, 3, and 4 to determine the…