What is the amount of the annual pension payment that

Assignment Help Accounting Basics

Reference no: EM13389089

Francisco Company has established a defined benefit pension plan for its lone employee, Derrald Ryan, Annual payments under the pension plan are equal to 3% of Derrald's highest lifetime salary multiplied by the number of years with the company. Derralds salary in 2014 was $75,000. Derrald is expected to retire in 20 years, and his salary increase are expected to average 4% per year during that period. As of the beginning of 2015, Derrald has worked for Francisco Company for 12 years.

1. What is the amount of the annual pension payment that should be used in computing Francisco's accumulated benefit obligation (ABO) as of January 1, 2015?

2. What is the amount of the annual pension payment that should be used in computing Francisco's projected benefit obligation (PBO) as of January 1, 2015?

Reference no: EM13389089

Questions Cloud

A draw a gantt chart for this project b what is the : a construction company requires the following activities for a projectactivityimmediate predecessoractivity

A pet project of top management has been given the green : question 1your initial discussion thread is due on day 3 thursday and you have until day 7 monday to respond to your

Using microsoft excel draw the graph illustrating the : a doctoral student has just completed a study for her dissertation and found the following demand and supply schedules

Identifies and analyzes the most important external : complete the external environmental scan for your organization. perform an internal competitive environmental scan for

What is the amount of the annual pension payment that : francisco company has established a defined benefit pension plan for its lone employee derrald ryan annual payments

Write a paper of no more than 1400 words that evaluates : write a paper of no more than 1400 words that evaluates alternatives an organization must consider to realize

Calculate the amount of bonus is the bonus is calculated on : illinois wholesale company has an agreement with it sales manager entitling that individual to 7 of company earning as

The quantity quality price and accessibility of financial : 1.what human resource component within its operating environment is a major element of a firmrsquos ability to satisfy

Youve been given the following information for ethan : you have been given the following information for ethan company as of june 1 2010. ethan company purchased a parcel of

User Account

All Pages