Which statement below is not correct regarding the Projected Benefit Obligation (PBO)? Group of answer choices...
Which statement below is not correct regarding the Projected Benefit Obligation (PBO)?
Group of answer choices
The PBO is based on future salary levels.
Benefits paid to retirees do not affect the PBO.
A higher discount rate assumption increases the projected benefit obligation.
The PBO represents the present value of the retirement benefits earned to date.
Homework Answers
the below statement is not correct regarding the Projected Benefit Obligation (PBO):-
A higher discount rate assumption increases the projected benefit obligation.
Add Answer to:
Which statement below is not correct regarding the Projected
Benefit Obligation (PBO)?
Group of answer choices...
Problem 17-2 PBO calculations; present value concepts (LO17-3] Sachs Brands' defined benefit pension plan specifies annual...
Problem 17-2 PBO calculations; present value concepts (LO17-3] Sachs Brands' defined benefit pension plan specifies annual retirement benefits equal to: 1.4% x service years x final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2004 and is expected to retire at the end of 2038 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $97,000 at the end of 2018 and the company's...
Problem 17-2 (Algo) PBO calculations; present value concepts [LO17-3] Sachs Brands's defined benefit pension plan specifies...
Problem 17-2 (Algo) PBO calculations; present value concepts [LO17-3] Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.2% x 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 $85,000 at the end of 2021 and the company's...
1 On January 1, 2018, B Company had a Projected Benefit Obligation of $375,000, Plan Assets of $2...
1 On January 1, 2018, B Company had a Projected Benefit Obligation of $375,000, Plan Assets of $200,000, AOCI: PSC of $160,000, and AOCI: Loss of $250,00. The following additional information is available Annual service cost Settlement/Discount rate Expected earnings rate Actual return on assets Funding Benefits paid to retirees Gain or loss, if necessary, is amortized over 10 yrs. PSC is being amortized $20,000 per year Instructions: a. Prepare the journal entries to record the pension expense. It might...
Clark Industries has a defined benefit pension plan that specifies annual retirement benefits equal to: 1.7%...
Clark Industries has a defined benefit pension plan that specifies annual retirement benefits equal to: 1.7% x Service years Final year's salary Stanley Mills was hired by Clark at the beginning of 1999. Mills is expected to retire at the end of 2043 after 45 years of service. His retirement is expected to span 15 years. At the end of 2018, 20 years after being hired, his salary is $85,000. The company's actuary projects Mills's salary to be $320,000 at...
Clark Industries has a defined benefit pension plan that specifies annual retirement benefits equal to: 1.7%...
Clark Industries has a defined benefit pension plan that specifies annual retirement benefits equal to: 1.7% x Service years Final year's salary Stanley Mills was hired by Clark at the beginning of 1999. Mills is expected to retire at the end of 2043 after 45 years of service. His retirement is expected to span 15 years. At the end of 2018, 20 years after being hired, his salary is $85,000. The company's actuary projects Mills's salary to be $320,000 at...
Problem 17-3 Service cost, interest, and PBO calculations; present value concepts (LO17-3] Sachs Brands' defined benefit...
Problem 17-3 Service cost, interest, and PBO calculations; present value concepts (LO17-3] Sachs Brands' defined benefit pension plan specifies annual retirement benefits equal to: 1.3% x service years x final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2004 and is expected to retire at the end of 2038 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $91,000 at the end of...
Exercise 19-59 Defining Pension Terminology LO1, 2, 3, 4, 5, 6 e Terms relating to concepts...
Exercise 19-59 Defining Pension Terminology LO1, 2, 3, 4, 5, 6 e Terms relating to concepts discussed in this chapter along with descriptions of the terms are included in the fol lowing two lists. 1. Projected benefit a. Amount reported as pension expense for the period; has five components. obligation b. Allocation of the cost of retroactive pension benefits to periodic expense. - 2. Expected retum on c. Actuarial present value of future pension benefits camed as of the plan...
gain-pensions, are given below. Projected benefit obligation Plan assets Funded status Prior service cost-AOCI Net gain-AOCI...
gain-pensions, are given below. Projected benefit obligation Plan assets Funded status Prior service cost-AOCI Net gain-AOCI ($ in 00s) 2018 2018 Beginning Ending Balances Balances $4,000 $ 4,501 4,400 4,791 400 290 425 400 460 395 Retirees were paid $250,000 and the employer contribution to the pension fund was $265,000 at the end of 2018. The expected rate of return on plan assets was 10%, and the actuary's discount rate is 8%. There were no changes in actuarial estimates and...
please calculate the interest and PBO based of the service cost calculated and show formulas. Ulaas...
please calculate the interest and PBO based of the service
cost calculated and show formulas.
Ulaas Paste Font Alignment Number Cell Styles =IF($F$4-B16>=0,$F$12*(1+$F$8)^_($F$4-B16),0) fx 100.000.00 Free Accounting Firm Defined Ben Plan C utions Input Year's Unis Retirement Service Life Expectancy Final Year of Work Salary % Discount Rate Benefit Parlod (Annual) Amusl Retirement Benefit Payment Amuel Retirement Earned Yearly Service Cast 25000100 1.000.00 SUB110190 Outout Year Bene EBENSORENNBBURONOW Service Cost Interest 3,164 23 MVALUE! 3.290 80T 3,422.44 3,559.33 3,701.71 3,849.78...
The following defined pension dates of Doreen Corporation apply to the year 20x1: Projected benefit obligation,...
The following defined pension dates of Doreen Corporation apply to the year 20x1: Projected benefit obligation, 1/1/xl (before amendment) $560,800 Plan assets, 1/1/x1 $546,200 Prepaid accrued pension cost (credit) 14,600 On January 1, 20x1, Doreen Corp, through plan amendment, grants prior service benefits having a present value of $100,000 Settlement rate 9% Annual pension service cost 58.000 Contributions (funding) 55,000 Actual return on plan assets 52.280 Benefits paid to retirees 40,000 Prior service cost amortization for 20x1 17,000 Instructions For...
Problem 17-2 PBO calculations; present value concepts (LO17-3] Sachs Brands' defined benefit pension plan specifies annual retirement benefits equal to: 1.4% x service years x final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2004 and is expected to retire at the end of 2038 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $97,000 at the end of 2018 and the company's...
Problem 17-2 (Algo) PBO calculations; present value concepts [LO17-3] Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.2% x 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 $85,000 at the end of 2021 and the company's...
1 On January 1, 2018, B Company had a Projected Benefit Obligation of $375,000, Plan Assets of $200,000, AOCI: PSC of $160,000, and AOCI: Loss of $250,00. The following additional information is available Annual service cost Settlement/Discount rate Expected earnings rate Actual return on assets Funding Benefits paid to retirees Gain or loss, if necessary, is amortized over 10 yrs. PSC is being amortized $20,000 per year Instructions: a. Prepare the journal entries to record the pension expense. It might...
Clark Industries has a defined benefit pension plan that specifies annual retirement benefits equal to: 1.7% x Service years Final year's salary Stanley Mills was hired by Clark at the beginning of 1999. Mills is expected to retire at the end of 2043 after 45 years of service. His retirement is expected to span 15 years. At the end of 2018, 20 years after being hired, his salary is $85,000. The company's actuary projects Mills's salary to be $320,000 at...
Clark Industries has a defined benefit pension plan that specifies annual retirement benefits equal to: 1.7% x Service years Final year's salary Stanley Mills was hired by Clark at the beginning of 1999. Mills is expected to retire at the end of 2043 after 45 years of service. His retirement is expected to span 15 years. At the end of 2018, 20 years after being hired, his salary is $85,000. The company's actuary projects Mills's salary to be $320,000 at...
Problem 17-3 Service cost, interest, and PBO calculations; present value concepts (LO17-3] Sachs Brands' defined benefit pension plan specifies annual retirement benefits equal to: 1.3% x service years x final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2004 and is expected to retire at the end of 2038 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $91,000 at the end of...
Exercise 19-59 Defining Pension Terminology LO1, 2, 3, 4, 5, 6 e Terms relating to concepts discussed in this chapter along with descriptions of the terms are included in the fol lowing two lists. 1. Projected benefit a. Amount reported as pension expense for the period; has five components. obligation b. Allocation of the cost of retroactive pension benefits to periodic expense. - 2. Expected retum on c. Actuarial present value of future pension benefits camed as of the plan...
gain-pensions, are given below. Projected benefit obligation Plan assets Funded status Prior service cost-AOCI Net gain-AOCI ($ in 00s) 2018 2018 Beginning Ending Balances Balances $4,000 $ 4,501 4,400 4,791 400 290 425 400 460 395 Retirees were paid $250,000 and the employer contribution to the pension fund was $265,000 at the end of 2018. The expected rate of return on plan assets was 10%, and the actuary's discount rate is 8%. There were no changes in actuarial estimates and...
please calculate the interest and PBO based of the service
cost calculated and show formulas.
Ulaas Paste Font Alignment Number Cell Styles =IF($F$4-B16>=0,$F$12*(1+$F$8)^_($F$4-B16),0) fx 100.000.00 Free Accounting Firm Defined Ben Plan C utions Input Year's Unis Retirement Service Life Expectancy Final Year of Work Salary % Discount Rate Benefit Parlod (Annual) Amusl Retirement Benefit Payment Amuel Retirement Earned Yearly Service Cast 25000100 1.000.00 SUB110190 Outout Year Bene EBENSORENNBBURONOW Service Cost Interest 3,164 23 MVALUE! 3.290 80T 3,422.44 3,559.33 3,701.71 3,849.78...
The following defined pension dates of Doreen Corporation apply to the year 20x1: Projected benefit obligation, 1/1/xl (before amendment) $560,800 Plan assets, 1/1/x1 $546,200 Prepaid accrued pension cost (credit) 14,600 On January 1, 20x1, Doreen Corp, through plan amendment, grants prior service benefits having a present value of $100,000 Settlement rate 9% Annual pension service cost 58.000 Contributions (funding) 55,000 Actual return on plan assets 52.280 Benefits paid to retirees 40,000 Prior service cost amortization for 20x1 17,000 Instructions For...
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