Required: 2. Estimate by the projected benefits approach the amount of Davenport's annual retirement payments earned as of the end of 2021. 3. What is the company's projected benefit obligation at the end of 2021 with respect to Davenport? (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 company's projected benefit obligation at the end of 2024 (three years later) with respect to Davenport? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar.)
Required: 2. Estimate by the projected benefits approach the amount of Davenport's annual retirement payments earned as of the end of 2021. 3. What is the company's projected benefit obligation at the end of 2021 with respect to Davenport? (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 company's projected benefit obligation at the end of 2024 (three years later) with respect to Davenport? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Yu.36.
Transcribed Image Text:Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.5% x service years x final year's salary,
payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2007 and is expected to retire at the end of
2041 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $88,000 at the end of 2021 and the
company's actuary projects her salary to be $270,000 at retirement. The actuary's discount rate is 6%. (FV of $1, PV of $1, FVA of $1,
PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Required:
2. Estimate by the projected benefits approach the amount of Davenport's annual retirement payments earned as of the end of 2021.
3. What is the company's projected benefit obligation at the end of 2021 with respect to Davenport? (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 company's projected benefit obligation at the end of 2024 (three
years later) with respect to Davenport? (Do not round intermediate calculations. Round your final answer to the nearest whole
dollar.)
Answer is complete but not entirely correct.
2.
Annual retirement payments
3. Projected benefit obligation 2021
4. Projected benefit obligation 2024
|
S
S
S
19,800 X
66,846 X
113,994 X
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