What would the present value of the assets required

Assignment Help Accounting Basics
Reference no: EM132916449

Question - Dan started work for the Police Department this year and is a member of a defined benefit pension plan. Zack just turned 27 years old. He expects to retire in 30 years at age 57. At that time, the Police Dept. pension plan will pay Zack annual pension payments equal to 2.0% of his final year's salary for each year of services rendered. The pension payments will continue until Zack's death, which actuaries expect to be when he turns 95 years old. For the current year, Zack will earn $45,000 this year, and this salary rate is expected to increase 2.3% per year. Assume that the Police Department uses a 5.0% interest rate for both its accrued pension obligations and the return on its pension assets.

What would the present value of the assets required when Zack retires, i.e., the accrued benefit obligation required for Zack's pension just prior to his retirement at age 57?

Reference no: EM132916449

Questions Cloud

What should do assuming projected sales : Assuming your projected sales (and therefore tax bracket) are predicted to increase dramatically over the next 5 years, what should you do?
What amount should lorange recognize as a liability : Under U.S. GAAP, what amount, if any, should Lorange recognize as a liability related to this lawsuit
Personal feelings about inclusion : One way to explore the concept of inclusion is to reflect on your own personal feelings about inclusion.
Find current article concerning financial accounting issue : Find and discuss a current article concerning a financial accounting issue. Make sure that it is a financial accounting issue (i.e., how something)
What would the present value of the assets required : What would the present value of the assets required when Zack retires, i.e., the accrued benefit obligation required for Zack's pension just prior
Literature review on pedagogical approaches : Conduct a literature review on the Pedagogical Approaches to the use of the Universal Learning Design for accommodating the needs of students
Explain three sources of conflict in dsintok : Determine the type of leadership style practiced by Mr and Mrs Ramli. D'Sintok is a restaurant based in Sintok. It was formed in 1994 by Mr and Mrs Ramli.
Identify and describe a step to take once fraud is suspected : A medium-sized, family-owned business operates as both a distributor and a retailer. Identify and describe a step to take once fraud is suspected
Child oral communication development : Discuss the importance of family influences on a child's oral communication development.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Make all the necessary journal entries for usa company

MAKE ALL THE NECESSARY JOURNAL ENTRIES FOR USA COMPANY IN 2016 AND 2017. Remember, USA entered into a covered forward contract on October 2nd.

  Test the quantity times price on a sample of sales invoices

Test the quantity times price on a sample of sales invoices. Compare the current year's provision for warranty expenses against that of the prior year.

  Record the employer cash payment of the net payroll

Complete payroll register by filling in all cells for the pay period ended August 31. Record the employer's cash payment of the net payroll of part b

  Calculate the MCE

Kurena Company provided the following information on one of its factories: Hours of cell production labor in a quarter: 30,000 hours. Calculate the MCE

  Seeking advice or clarification on three main assumptions

In this case, you have been provided financial information about the company in order to create a cash budget. Management is seeking advice or clarification on three main assumptions the company has been operating. Address Questions 1 and 2 at t..

  Explain the top five reasons private companies

Identify and explain the top five reasons private companies go public. Explain information the firm is required to provide to the investor with complete transparency.

  Prepare a lease amortization schedule for Rode Company

Annual lease payment due at the beginning of each year, beginning with May 1, 2014 - $20,020.26. Prepare a lease amortization schedule for Rode Company

  A business estimates the amount of uncollectable accounts

A business estimates the amount of uncollectable accounts using the percentage of receivables method

  What must partner W include in taxable income

If the new partnership subsequently sells the securities at their FMV of $15,000, what must partner W include in taxable income

  Prepare sales budgets in units and dollars

Axioma Ltd has the following budgeted sales for the next six-month period: Prepare sales budgets in units and dollars for February and March

  Compare the payment on the fixed rate loan

Compare the payment on the fixed rate loan to what Harrison would have to pay on the ARM if it reset to 12% after ten years

  Why would a person purchase a callable bond

if a company liquidates, which investment has priority? what if you had preferred stock?

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