Calculate the effect of the change

Assignment Help Cost Accounting
Reference no: EM132996081

Question - Sunrise Landscape'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. Shannon Best was hired by Sunrise 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. Best's salary is $80,000 at the end of 2021 and the company's actuary projects her salary to be $230,000 at retirement. The actuary's discount rate is 6%.

At the beginning of 2022, changing economic conditions caused the actuary to reassess the applicable discount rate. It was decided that 7% is the appropriate rate. (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 - Calculate the effect of the change in the assumed discount rate on the PBO at the beginning of 2022 with respect to Shannon Best.

Reference no: EM132996081

Questions Cloud

Where do see market inefficiency begging for entrepreneurial : Where do you see market inefficiencies begging for entrepreneurial acumen? Music startups seem to afford new opportunities for investment.
Diversity policies and practices of similar organisations : Description of the benefits of diversity in relation to Soft-Authent's strategic objectives and Diversity policies and practices of similar organisations
How much of the bjl loss can jon deduct : How much (if any) of the BJL loss must Jon carry forward until his basis is reestablished? How much (if any) of the BJL loss can Jon deduct on his personal tax
Provide a comprehensive outline of the legislation : Provide a comprehensive outline of the legislation, codes of practice and national standards that would be applied to the development of diversity policy.
Calculate the effect of the change : Calculate the effect of the change in the assumed discount rate on the PBO at the beginning of 2022 with respect to Shannon Best
What is the amount for the equity ratio : If you know that the total assets is equal to 400,000, the total liabilities is equal to 320,000. What is the amount for the equity ratio
Estimate the value of the inventory destroyed in the fire : The accounting records were stored in another facility, Estimate the value of the inventory destroyed in the fire using the gross profit method.
Develop and implement diversity policy : Describe with the help of relevant examples how diversity can be demonstrated within the business environment in terms of cultures, beliefs and traditions
Prepare the journal entry to issue the bonds at January : Prepare the journal entry to issue the bonds at 1 January 2020 and the entry at Dec 31, 2020 (December is the end of the financial year)

Reviews

Write a Review

Cost Accounting Questions & Answers

  How do make a statement of cost of goods manufactured

Huntersvile Inc., For Huntersville Inc.'s year ended December 31, 2019, statement of cost of goods manufactured and an income statement.

  Determine the equivalent annual costs of owning a car

If a car owner earns 4.75% on her investments, determine the equivalent annual costs of owning a car with the following costs (note: EOY = end of year)

  How growing interest in sustainability issues by consumers

How the growing interest in sustainability issues by consumers is driven by? The immigration crisis in many countries./ The trend to economic nationalism.

  Which the journal entry to record a return of merchandise

Which the journal entry to record a return of merchandise purchased on account under a PERIODIC inventory system would be

  How would the organization identify the cost drivers

How would the organization identify the cost drivers? How would the organization use them in the implementation of this system?

  Evaluate the quick ratio for december 31

Determine the quick ratio for December 31, 2014 and 2013 and interpret the change in the quick ratio between the two balance sheet dates.

  Which criteria is necessary for revenue recognition

What are examples of expense that would not be considered an expenditure and one expenditure that would not be considered expense.

  Are any major capital projects funds reported

Are there any major Capital Projects Funds reported on the Governmental Funds Balance Sheet in the Fund Financial Statements? If so, list them.

  Determine the contribution margin per unit sold is

If the selling price is $31.00 per unit, the contribution margin per unit sold is closest to?Macy Corporation's relevant range of activity is 7,500 units

  Prepare performance report for xyz manufacturing plc

Prepare Performance Report for XYZ Manufacturing plc. on the data. Sales budget br,8,000,and Actual br 8,500. Labor budget br 2,500 and Actual,1,500

  Create a cost of production report for each department

The department production report, Create a cost of production report for each department. Round total costs to the nearest peso. Use WAM

  Use the high-low method to calculate fixed cost per month

Use the high-low method to calculate the fixed cost per month. Sandy, the owner of Sunshine Car Wash has found that her income changes

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd