Sachs Brands' defined benefit pension plan specifies annual retirement benefits equal to: 1.6% service...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Sachs Brands' defined benefit pension plan specifies annual retirement benefits equal to: 1.6% service years 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 $94,000 at the end of 2018 and the company's actuary projects her salary to be $300,000 at retirement. The actuary's discount rate is 8%. At the beginning of 2019, changing economic conditions caused the actuary to reassess the applicable discount rate. It was decided that 9% is the appropriate rate. (FV of $1, PV of $1, FVA of $1, PVA of $1 FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required Calculate the effect of the change in the assumed discount rate on the PBO at the beginning of 2019 with respect to Davenport. (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) The gain
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
