Homework Answers
The value of the annuity is $ 121581 on the date the employees retire, i.e. 12 years from today.
So discount rate is 6% being future interest rate. $ 121581 needs to be discounted at 6% to arrive at present value of $ 121581 12 years from today.
So contribution today to fully fund the pension plan = $ 121581 / 1.06 / 1.06 / 1.06 / 1.06 / 1.06 / 1.06 / 1.06 / 1.06 / 1.06 / 1.06 / 1.06 / 1.06 = $ 60422
Add Answer to:
Lakeland Corp. calculates that in the current year its employees earned an additional annuity of $10,000 for 20 year...
The interest cost included in the annual pension cost recorded by an employer sponsoring a defined benefit pension plan...
The interest cost included in the annual pension cost recorded by an employer sponsoring a defined benefit pension plan represents the a) difference between the expected and actual return on plan assets. b) increase in the defined benefit obligation due to the passage of time. c) increase in the fair value of plan assets due to the passage of time. d) interest earned on the plan assets for the year. An experience gain or loss (adjustment) is a) additional...
(Future value of an annuity) Upon graduating from college 35 years ago, Dr. Nick Riviera was...
(Future value of an annuity) Upon graduating from college 35 years ago, Dr. Nick Riviera was already planning for his retirement. Since then, he has made deposits into a retirement fund on a semiannually basis in the amount of S700. Nick has just completed his final payment and is at last ready to retire. His retirement fund has earned 6 percent compounded semiannually. Use five decimal places for the periodic interest rate in your calculations. a. How much has Nick...
(Future value of an annuity) Upon graduating from college 35 years ago, Dr. Nick Riviera was...
(Future value of an annuity) Upon graduating from college 35 years ago, Dr. Nick Riviera was already planning for his retirement. Since then, he has made deposits into a retirement fund on a quarterly basis in the amount of $300. Nick has just completed his final payment and is at last ready to retire. His retirement fund has earned 8 percent compounded quarterly. Use five decimal places for the periodic interest rate in your calculations. a. How much has Nick...
The City of Sweetwater maintains an Employees’ Retirement Fund, a single employer defined benefit plan that...
The City of Sweetwater maintains an Employees’ Retirement Fund, a single employer defined benefit plan that provides annuity and disability benefits. The fund is financed by actuarially determined contributions from the city’s General Fund and by contributions from employees. Administration of the retirement fund is handled by General Fund employees, and the retirement fund does not bear any administrative expenses. The Statement of Fiduciary Net Position for the Employees’ Retirement Fund as of July 1, 2016, is shown here: CITY...
Waddle Company amended its defined benefit pension plan on January 1, 2024, to increase retirement benefits earned with each service year. The actuary estimated the prior service cost to be $216,000. Waddle's 80 present employees are expected to retire at
Waddle Company amended its defined benefit pension plan on January 1, 2024, to increase retirement benefits earned with each service year. The actuary estimated the prior service cost to be $216,000. Waddle's 80 present employees are expected to retire at the rate of about 10 each year at the end of each of the next eight years.Required:Using the service method, calculate the amount of prior service cost to be amortized to pension expense in 2024.Using the straight-line method, calculate the...
Three employees of the Horizon Distributing Company will receive annual pension payments from thecompany when they...
Three employees of the Horizon Distributing Company will receive
annual pension payments from thecompany when they retire. The
employees will receive their annual payments for as long as they
live. Lifeexpectancy for each employee is 15 years beyond
retirement. Their names, the amount of their annualpension
payments, and the date they will receive their first payment are
shown below:
Employee
Annual Payment
Date of First Payment
Tinkers
$20,000
12/31/21
Evers
25,000
12/31/22
Chance
30,000
12/31/23
Required:
1. Compute the present...
Three employees of the Horizon Distributing Company will receive annual pension payments from the company when...
Three employees of the Horizon Distributing Company will receive annual pension payments from the company when they retire. The employees will receive their annual payments for as long as they live. Life expectancy for each employee is 15 years beyond retirement. Their names, the amount of their annual pension payments, and the date they will receive their first payment are shown below: Employee Annual Payment Date of First Payment Tinkers $ 37,000 12/31/24 Evers 42,000 12/31/25 Chance 47,000 12/31/26 Required:...
CP 11-6 Recognizing pension expense The annual examination of Felton Company's financial statements by its external...
CP 11-6
Recognizing pension expense
The annual examination of Felton Company's financial statements
by its external public accounting firm (auditors) is nearing
completion. The following conversation took place between the
controller of Felton Company (Francie) and the audit manager from
the public accounting firm (Sumana):
Sumana:
You know, Francie, we are about to wrap up our audit for this
fiscal year. Yet, there is one item still to be resolved.
Francie:
What's that?
Sumana:
Well, as you know, at the...
Three employees of the Horizon Distributing Company will receive annual pension payments from the...
Three employees of the Horizon Distributing Company will receive annual pension payments from the company when they retire. The employees will receive their annual payments for as long as they live. Life expectancy for each employee is 15 years beyond retirement. Their names, the amount of their annual pension payments, and the date they will receive their first payment are shown below: (EV of S1. PV of S1. FVA of $1. PVA of S1. FVAD of $1 and PVAD of...
TVM Assignment Please answer the questions in an excel spreadsheet with the formulas showing. Part IV:...
TVM Assignment Please answer the questions in an excel spreadsheet with the formulas showing. Part IV: Retirement Planning You realize the wisdom of starting early at age 22 in saving for your retirement and plan on making 43 equal end of year annual deposits in an IRA account in hopes of having at least $1,000,000 once you retire at age 65 (immediately after your last deposit into the IRA account), but you think it would be best to have $1,500,000...
(Future value of an annuity) Upon graduating from college 35 years ago, Dr. Nick Riviera was already planning for his retirement. Since then, he has made deposits into a retirement fund on a semiannually basis in the amount of S700. Nick has just completed his final payment and is at last ready to retire. His retirement fund has earned 6 percent compounded semiannually. Use five decimal places for the periodic interest rate in your calculations. a. How much has Nick...
(Future value of an annuity) Upon graduating from college 35 years ago, Dr. Nick Riviera was already planning for his retirement. Since then, he has made deposits into a retirement fund on a quarterly basis in the amount of $300. Nick has just completed his final payment and is at last ready to retire. His retirement fund has earned 8 percent compounded quarterly. Use five decimal places for the periodic interest rate in your calculations. a. How much has Nick...
Three employees of the Horizon Distributing Company will receive
annual pension payments from thecompany when they retire. The
employees will receive their annual payments for as long as they
live. Lifeexpectancy for each employee is 15 years beyond
retirement. Their names, the amount of their annualpension
payments, and the date they will receive their first payment are
shown below:
Employee
Annual Payment
Date of First Payment
Tinkers
$20,000
12/31/21
Evers
25,000
12/31/22
Chance
30,000
12/31/23
Required:
1. Compute the present...
CP 11-6
Recognizing pension expense
The annual examination of Felton Company's financial statements
by its external public accounting firm (auditors) is nearing
completion. The following conversation took place between the
controller of Felton Company (Francie) and the audit manager from
the public accounting firm (Sumana):
Sumana:
You know, Francie, we are about to wrap up our audit for this
fiscal year. Yet, there is one item still to be resolved.
Francie:
What's that?
Sumana:
Well, as you know, at the...
Three employees of the Horizon Distributing Company will receive annual pension payments from the company when they retire. The employees will receive their annual payments for as long as they live. Life expectancy for each employee is 15 years beyond retirement. Their names, the amount of their annual pension payments, and the date they will receive their first payment are shown below: (EV of S1. PV of S1. FVA of $1. PVA of S1. FVAD of $1 and PVAD of...
Most questions answered within 3 hours.
-
On October 1, 20X1, a company purchased a piece of land by
agreeing to pay the...
asked 6 minutes ago -
Jamie is doing a survey at her school about whether the students
feel the cafeteria food...
asked 10 minutes ago -
What are the roles of 3' and 5' untranslated regions in
mRNAs?
asked 12 minutes ago -
A domestic television receives antenna delivers a sky noise
power of -105 dBm to a matched...
asked 10 minutes ago -
What do you think are the chemical reactions involved in the
breathalyzer tests administered to potentially...
asked 26 minutes ago -
A random sample of 120 observations produces a mean of
38.2 from a population with a...
asked 33 minutes ago -
The average area of land burned by forest fires every year in
Canada is 2.5 million...
asked 35 minutes ago -
36. The basic difference between government bureaus and market
firms is that bureaus:
a. can...
asked 34 minutes ago -
java
- A recursive method findR() to search for a number in list
(ArrayList)
- A...
asked 53 minutes ago -
Which of the following is an example of a screen against adverse
selection? [Mark All That...
asked 52 minutes ago -
A worker drives a 0.560 kg spike into a rail tie with a 2.76 kg
sledgehammer....
asked 57 minutes ago -
Assume the following information concerning two stocks that make
up an index. What is the price-weighted...
asked 1 hour ago