What is the interest cost for 2023? b. What is the projected benefit obligation on December 31, 2024?
Q: .Beall, Inc. has a defined-benefit pension plan covering its 50 employees. Beall agrees to amend its…
A: The retirement benefits primarily consist of the workers' leave encashment (employees are permitted…
Q: A partially completed pension spreadsheet showing the relationships among the elements that comprise…
A: SOLUTION PENSION IS A RETIREMENT PLAN THAT PROVIDES A MONTHLY INCOME IN RETIREMENT.
Q: Louie Company's defined benefit pension plan had a PBO of $272,000 on January 1, 2021. During 2021,…
A: Projected Benefit Obligation(PBO) is estimated amount that is set aside by entity to meet pension…
Q: Garland Inc. offers a new employee a single-sum signing bonus at the date of employment, June 1,…
A: We will have to use the concept of time value of money to solve this question. We need to first…
Q: Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.6% x…
A: Project Benefit Obligation is an actuarial measurement of a company that represents the present…
Q: Blount Company provides its employees with vacation benefits and a defined contribution pension…
A: From the perspective of the Blount company Vacation pay is an expense and therefore it is debited…
Q: LeMond has 50 full time employees. Recently the company decided to initiate a pension plan as part…
A: Workings:
Q: Oregon Company's employees are eligible for retirement with benefits at the end of the year in which…
A: Companies provide the retirement options to the employees and companies make provisions for that in…
Q: A partially completed pension spreadsheet showing the relationships among the elements that comprise…
A: A pension worksheet helps to know about the benefits or losses from the particular scheme. It is…
Q: A corporation's pension plan provides a lifetime annual income to its employees upon retirement at…
A: Salary=$62879Period=16 yearsAnnual percentage=2%
Q: Herring Wholesale Company has a defined benefit pension plan. On January 1, 2021, the following…
A: The question is based on the concept of Accounting Standard on Employee Benefits.
Q: Clark Industries has a defined benefit pension plan that specifies annual, year-end retirement…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Perry Industries has a defined benefit pension plan that specifies annual, year-end retirement…
A: Defined-benefit plans are employer-based initiatives that offer benefits according to factors like…
Q: Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.4% x…
A: Projected benefit obligation is the future benefits' present value that is to be paid to the…
Q: Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.4% ×…
A: ABO stands for Accumulated benefit obligation which is defined as the amount of the pension plan…
Q: Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.5% ×…
A: Accumulated benefit obligation (ABO) can be defined as the approximate value of the pension plan…
Q: Pharoah Company sponsors a defined benefit plan for its 100 employees. On January 1, 2025, the…
A: Based on the provided information, we can calculate various figures related to Pharoah Company's…
Q: Ivanhoe, Inc. has a defined-benefit pension plan covering its 50 employees. Ivanhoe agrees to amend…
A: Number of service years =50+40+30+20+10 = 150
Q: Pearsall offers defined benefit pension plan to employees, which had a PBO of $265,000 on January 1,…
A: Ending PBO = Beginning PBO + Service costs + Interest Costs - Pension benefit paid where, Interest…
Q: On January 1, 2024, Onyeocha Climbing Academy instituted a defined benefit pension plan for its…
A: Pension is defined as the fund collected from the taxpayer or employee during his term of…
Q: Gonzalez Co. accrues the liability for vacation pay at the rate of pay in effect when the…
A: Total employees =90 8 hours day 12 days paid vacation.
Q: Required: 1. What is the company's projected benefit obligation at the beginning of 2024 (after 14…
A:
Q: Company A has established a defined benefit plan indicating a plan formula for annual benefit equal…
A: Computation is as follows:Part 1)Last year salary=8000002% of last year salary multiplied by number…
Q: A partially completed pension spreadsheet showing the relationships among the elements that comprise…
A: Average Salary means the average of the Basic Salary + DA combined, drawn in the last 12 months
Q: Herring Wholesale Company has a defined benefit pension plan. On January 1, 2021, the following…
A: When a net gain or loss at the start of the year exceeds 10% of the PBO or 10% of plan assets,…
Q: A partially completed pension spreadsheet showing the relationships among the elements that comprise…
A: Pension fund are created to provide the future benefits to the employees of the organization. These…
Q: Ruby Corporation is required to pay the pension cost of one of its unionized employees. According to…
A: Present value is the current value of a future sum of money or stream of cash flows given a…
Q: Pendulum Enterprises has a defined benefit plan. Employees receive a pension equal to 2% of the…
A: Part 1: Answer: Mary-Lou's annual pension benefit is $33,750.Explanation:Part 2: Explanation:Step 1:…
Q: Select answer from the options below 192 for 2026 and 590 overall.
A: Defined-benefit pension plans are retirement plans where employers commit to providing specific…
Q: Pearsall Company's defined benefit pension plan had a projected benefit obligation (PBO) of $265,000…
A: A projected benefit obligation is a measurement of what the company will need currently to cover its…
Q: Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.6% x…
A: As per the Honor code of Bartleby we are bound to give the answer of first three sub part only,…
Q: Three employees of the Horizon Distributing Company will receive annual pension payments from the…
A: The present value is the value of future money at the current date. The present value technique is…
Q: Clark Industries has a defined benefit pension plan that specifies annual, year-end retirement…
A: ''Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: Oregon Company's employees are eligible for retirement with benefits at the end of the year in which…
A: Companies provide the retirement options to the employees and companies make provisions for that in…
Rachel Company has established a defined benefit pension plan for its employees. Annual payments under the pension plan are equal to 3% of an employee’s highest lifetime salary multiplied by the number of years with the entity. An employee’s salary in 2021 was P300,000. The employee is expected to retire in 10 years and the salary increases are expected to average 4% per year during that period. On December 31, 2021, the employee has worked for 12 years. The appropriate discount rate is 10% and the employee is expected to live for 5 years after retirement.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- Martin Services Company provides their employees vacation benefits and a defined contribution pension plan. Employees earned vacation pay of $39,500 for the period. The pension plan requires a contribution to the plan administrator equal to 9% of employee salaries. Salaries were $750,000 during the period. Hide a. Provide the journal entry for the vacation pay. Hide b. Provide the journal entry for the pension benefit.Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.2% 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 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%. Note: Use tables, Excel, or a financial calculator. (EV of $1. PV of $1. FVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) At the beginning of 2025, the pension formula was amended to: 1.40% * Service years * Final year's salary The 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 2025 with respect to Davenport after the amendment described above? 2. Since the amendment occurred at…Oregon Co.'s employees are eligible for retirement with benefits at the end of the year in which both age 60 is attained and they have completed 35 years of service. The benefits provide 15 years’ reimbursement for health care services of $27,000 annually, beginning one year from the date of retirement. Ralph Young was hired at the beginning of 1992 by Oregon after turning age 22 and is expected to retire at the end of 2030 (age 60). The discount rate is 3%. The plan is unfunded.The PV of an ordinary annuity of $1 where n = 15 and i = 3% is 11.93794.The PV of $1 where n = 2 and i = 3% is 0.94260. With respect to Ralph, what is the interest cost to be included in Oregon's 2029 postretirement benefit expense, rounded to the nearest dollar?
- 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 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 $90,000 at the end of 2021 and the company's actuary projects her salary to be $240,000 at retirement. The actuary's discount rate is 7%. (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: 1. What is the company's projected benefit obligation at the beginning of 2021 (after 14 years' service) with respect to Davenport? (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 2021 service. 3.…Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.6% 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 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 $94,000 at the end of 2024 and the company's actuary projects her salary to be $300,000 at retirement. The actuary's discount rate is 8%. Note: Use tables, Excel, or a financial calculator. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD 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 1.3% × service years x final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 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 $91,000 at the end of 2021 and the company's actuary projects her salary to be $285,000 at retirement. The actuary's discount rate is 9%. (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…
- sThree employees of the Horizon Distributing Company will receive annual pension payments from the company when they retire. The employees will receive their annual payments for as long as they live. Life expectancy for each employee is 14 years beyond retirement. Their names, the amount of their annual pension payments, and the date they will receive their first payment are shown below: Employee Tinkers Evers Annual Payment $ 27,000 Date of First Payment 12/31/2027 32,000 37,000 12/31/2028 12/31/2029 Chance Required: 1. Compute the present value of the pension obligation to these three employees as of December 31, 2024. Assume an 11% interest rate. 2. The company wants to have enough cash invested at December 31, 2027, to provide for all three employees. To accumulate enough cash, they will make three equal annual contributions to a fund that will earn 11% interest compounded annually. The first contribution will be made on December 31, 2024. Compute the amount of this required annual…Vizsla Services offers its employee a defined benefit pension plan. This plan pays the employee 2% of the employee's salary for each year of service, with a maximum of 30 years. The employee is projected to have a final salary of $520,000. The employee has worked for Vizsla Services for 8 year and is expected to work for the company for another 17 years. The employee is expected to live for 28 years after retiring. Vizsla Services uses a 4% interest rate for all calculations for its post-retirement benefits and all calculations are ordinary annuities. What is gross PBO for the current year?
- Oregon Company's employees are eligible for retirement with benefits at the end of the year in which both age 60 is attained and they have completed 35 years of service. The benefits provide 15 years' rimbursement for health care services of $21,000 annually, beginning one year from the date of retirement Ralph Young was hired at the beginning of 1988 by Oregon after turning age 22 and is expected to retire at the end of 2026 (age 60) The discount rate is 3%. The plan is unfunded. The PV of an ordinary annuity of $1 where n-15 and/-3% is 1193794 The PV of $1 where n-2 and/-3% is 094260 With respect to Ralph, what is Oregon's expected postretirement beneft obligation (EPBO) et the end of 2024, rounded to the nearest dolar? Muple Choice O O O $122.195 $236,307 $60 1764.400Oregon Company's employees are eligible for retirement with benefits at the end of the year in which both age 60 is attained and they have completed 35 years of service. The benefits provide 15 years' reimbursement for health care services of $37,000 annually, beginning one year from the date of retirement. Ralph Young was hired at the beginning of 1988 by Oregon after turning age 22 and is expected to retire at the end of 2026 (age 60). The discount rate is 4%. The plan is unfunded. The PV of an ordinary annuity of $1 where n=15 and /= 4% is 11.11839. The PV of $1 where n = 2 and /= 4% is 0.92456. With respect to Ralph, what is the interest cost to be included in Oregon's 2025 postretirement benefit expense, rounded to the nearest dollar? Multiple Choice О $14,434 О $14,509 О $15,398 None of these answer choices are correct Activate Wir Go to Settings toSachs 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 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 $98,000 at the end of 2024 and the company's actuary projects her salary to be $320,000 at retirement. The actuary's discount rate is 8%. At the beginning of 2025, changing economic conditions caused the actuary to reassess the applicable discount rate. It was decided that 9% 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…
