Compute the service and interest cost for 2012, Taxation

Assignment Help:

Sachs Brands' defined benefit pension plan specifies annual retirement benefits equal to: 1.2% × current service years × final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 1998 and is expected to retire at the end of 2032 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $95,000 at the end of 2011 after 14 years of service and the company's actuary projects her salary to be $305,000 at retirement. The actuary's discount rate is 9%.

1. Estimate by the accumulated benefits approach the amount of Davenport's annual retirement payments earned as of the end of 2011(after 14 years of service)
2. Compute the PBO for Sachs as of the end of 2011(after 14 years of service)
3. Compute Sachs's annual pension benefits earned as of the end of 2012(after 15 years of service)
4. Compute the PBO for Sachs as of then end of 2012(after 15 years of service)
5. Compute the service and interest cost for 2012 with respect to Sachs.

 


Related Discussions:- Compute the service and interest cost for 2012

Briefly describe motivations for leasing, After calculating a positive NPV,...

After calculating a positive NPV, Renew Inc. has decided to undertake a four-year project to manufacture guardrails from recycled plastic. The project requires a $250,000 machine t

Determine the amount of tax, Bass River Furniture operates a manufacturing ...

Bass River Furniture operates a manufacturing business in Bass River, Nova Scotia. On June 8, 2010, Bass River purchased an asset for an invoice price before HST of $1,800,000.  Th

Compute income tax, Assume that a large copy machine is being purchased by ...

Assume that a large copy machine is being purchased by your employer. the cost is 200.000$. the manufacturer claims it has a useful life of 8 years. this machine will lower operati

Sec 351 of income tax act, Bob and Carl transfer property to Stone Corporat...

Bob and Carl transfer property to Stone Corporation for 90% and 10% of Stone Stock, respectively. Pursuant to a biding agreement concluded before the transfer, Bob sells half of hi

Which are the allowances are exempted from the income tax, Q. Which are the...

Q. Which are the allowances are exempted from the income tax? Ans: 1. Uniform Allowance and Sumptuary Allowance 2. Death cum Retirement gratuity received by Government

What method of tax accounting used, Jenny is 35 years of age, single and is...

Jenny is 35 years of age, single and is a professional hairdresser. She was born in Australia, however she often travels overseas for extended periods for work purposes. Jenny r

Work contract tax, how work contract tax is to be shown in the invoice?

how work contract tax is to be shown in the invoice?

Calculate the market price, In an effort to reduce alcohol consumption, the...

In an effort to reduce alcohol consumption, the government is considering a $1 tax on each gallon of liquor sold (the tax is levied on producers). Suppose that the supply curve for

Deductions, Roberta Santos, age 41, is single and lives at 120 Sanborne Ave...

Roberta Santos, age 41, is single and lives at 120 Sanborne Avenue, Springfield, IL 60781. Her Social Security number is 123-45-6789. Roberta has been divorced from her former husb

Write Your Message!

Captcha
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