Accumulated benefit obligation (ABO) : This is the estimated present value of future retirement benefits, accumulated based on the current compensation levels. To Draw: A time line that depicts D’s expected service period, retirement period, and measurement date for the pension obligation

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Answer 1

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Chapter 17, Problem 17.1P

(1)

To determine

Accumulated benefit obligation (ABO): This is the estimated present value of future retirement benefits, accumulated based on the current compensation levels.

To Draw: A time line that depicts D’s expected service period, retirement period, and measurement date for the pension obligation

(2)

To determine

The annual retirement benefits estimated by the actuary, assumed to be earned by the employee at the end of 2018

(3)

To determine

ABO at the end of 2018, with respect to D

(4)

To determine

ABO at the end of 2021, with respect to D

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Problem 17-2 (Algo) PBO calculations; present value concepts [LO17-3] Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.4% × service years × 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 $92,000 at the end of 2021 and the company's actuary projects her salary to be $290,000 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…

10 2.27 points Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.2% * 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%. 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…

rr.17 Clark Industries has a defined benefit pension plan that specifies annual, year-end retirement benefits equal to: 1.3% × Service years × Final year’s salary Stanley Mills was hired by Clark at the beginning of 2005. Mills is expected to retire at the end of 2049 after 45 years of service. His retirement is expected to span 15 years. At the end of 2024, 20 years after being hired, his salary is $96,000. The company’s actuary projects Mills’s salary to be $430,000 at retirement. The actuary’s discount rate is 6%. For all requirements, round final answers to the nearest whole dollars. Do not round intermediate calculations. Use Excel, or a financial calculator. Required: Estimate the amount of Stanley Mills’s annual retirement payments for the 15 retirement years earned as of the end of 2024.

Answer 2

Question

Chapter 17, Problem 17.1P

(1)

To determine

Accumulated benefit obligation (ABO): This is the estimated present value of future retirement benefits, accumulated based on the current compensation levels.

To Draw: A time line that depicts D’s expected service period, retirement period, and measurement date for the pension obligation

(2)

To determine

The annual retirement benefits estimated by the actuary, assumed to be earned by the employee at the end of 2018

(3)

To determine

ABO at the end of 2018, with respect to D

(4)

To determine

ABO at the end of 2021, with respect to D

Expert Solution & Answer

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Answer 3

Question

Chapter 17, Problem 17.1P

(1)

To determine

Accumulated benefit obligation (ABO): This is the estimated present value of future retirement benefits, accumulated based on the current compensation levels.

To Draw: A time line that depicts D’s expected service period, retirement period, and measurement date for the pension obligation

(2)

To determine

The annual retirement benefits estimated by the actuary, assumed to be earned by the employee at the end of 2018

(3)

To determine

ABO at the end of 2018, with respect to D

(4)

To determine

ABO at the end of 2021, with respect to D

Expert Solution & Answer

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Answer 4

Question

Chapter 17, Problem 17.1P

(1)

To determine

Accumulated benefit obligation (ABO): This is the estimated present value of future retirement benefits, accumulated based on the current compensation levels.

To Draw: A time line that depicts D’s expected service period, retirement period, and measurement date for the pension obligation

(2)

To determine

The annual retirement benefits estimated by the actuary, assumed to be earned by the employee at the end of 2018

(3)

To determine

ABO at the end of 2018, with respect to D

(4)

To determine

ABO at the end of 2021, with respect to D

Expert Solution & Answer

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Answer 5

Chapter 17, Problem 17.1P

(1)

To determine

Accumulated benefit obligation (ABO): This is the estimated present value of future retirement benefits, accumulated based on the current compensation levels.

To Draw: A time line that depicts D’s expected service period, retirement period, and measurement date for the pension obligation

(2)

To determine

The annual retirement benefits estimated by the actuary, assumed to be earned by the employee at the end of 2018

(3)

To determine

ABO at the end of 2018, with respect to D

(4)

To determine

ABO at the end of 2021, with respect to D

Answer 6

Chapter 17, Problem 17.1P

(1)

To determine

Accumulated benefit obligation (ABO): This is the estimated present value of future retirement benefits, accumulated based on the current compensation levels.

To Draw: A time line that depicts D’s expected service period, retirement period, and measurement date for the pension obligation

Answer 7

Chapter 17, Problem 17.1P

(1)

To determine

Accumulated benefit obligation (ABO): This is the estimated present value of future retirement benefits, accumulated based on the current compensation levels.

To Draw: A time line that depicts D’s expected service period, retirement period, and measurement date for the pension obligation

Answer 8

(2)

To determine

The annual retirement benefits estimated by the actuary, assumed to be earned by the employee at the end of 2018

Answer 9

(2)

To determine

The annual retirement benefits estimated by the actuary, assumed to be earned by the employee at the end of 2018

Answer 10

(3)

To determine

ABO at the end of 2018, with respect to D

Answer 11

(3)

To determine

ABO at the end of 2018, with respect to D

Answer 12

(4)

To determine

ABO at the end of 2021, with respect to D

Answer 13

(4)

To determine

ABO at the end of 2021, with respect to D

Answer 14

Expert Solution & Answer

Answer 15

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Answer 16

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Answer 17

Ch. 17 - Prob. 17.1Q Ch. 17 - Prob. 17.2Q Ch. 17 - Prob. 17.3Q Ch. 17 - What is the vested benefit obligation?Ch. 17 - Prob. 17.5Q Ch. 17 - Prob. 17.6Q Ch. 17 - Name three events that might change the balance of...Ch. 17 - Prob. 17.8Q Ch. 17 - Prob. 17.9Q Ch. 17 - Prob. 17.10Q

Accumulated benefit obligation (ABO) : This is the estimated present value of future retirement benefits, accumulated based on the current compensation levels. To Draw: A time line that depicts D’s expected service period, retirement period, and measurement date for the pension obligation

Solution Summary: The author explains how to determine the annual retirement benefits estimated by the actuary at the end of 2018, with respect to D.

Accumulated benefit obligation (ABO): This is the estimated present value of future retirement benefits, accumulated based on the current compensation levels.

To Draw: A time line that depicts D’s expected service period, retirement period, and measurement date for the pension obligation

The annual retirement benefits estimated by the actuary, assumed to be earned by the employee at the end of 2018

ABO at the end of 2018, with respect to D

ABO at the end of 2021, with respect to D

Want to see the full answer?

Chapter 17 Solutions

Accumulated benefit obligation (ABO) : This is the estimated present value of future retirement benefits, accumulated based on the current compensation levels. To Draw: A time line that depicts D’s expected service period, retirement period, and measurement date for the pension obligation

Solution Summary: The author explains how to determine the annual retirement benefits estimated by the actuary at the end of 2018, with respect to D.

Accumulated benefit obligation (ABO): This is the estimated present value of future retirement benefits, accumulated based on the current compensation levels. To Draw: A time line that depicts D’s expected service period, retirement period, and measurement date for the pension obligation

The annual retirement benefits estimated by the actuary, assumed to be earned by the employee at the end of 2018

ABO at the end of 2018, with respect to D

ABO at the end of 2021, with respect to D

Want to see the full answer?

Chapter 17 Solutions

Accumulated benefit obligation (ABO): This is the estimated present value of future retirement benefits, accumulated based on the current compensation levels.

To Draw: A time line that depicts D’s expected service period, retirement period, and measurement date for the pension obligation