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

Calculate the equipments after-tax net salvage value, Net Salvage Value ...

Net Salvage Value Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost $24 million, of which 80% has been depreciated. The used

Tax Basis Balance Sheet, Prepare a Tax Basis Balance Sheet for the partners...

Prepare a Tax Basis Balance Sheet for the partnership on its formation at the beginning of 2012

Define VAT, Define VAT? what is excise? VAT refers for value added tax, tha...

Define VAT? what is excise? VAT refers for value added tax, that is termed as charged on profit earned by firm, for example example: let suppose a business man sells a product of U

Prepare a state tax return, David builds and maintains web applications for...

David builds and maintains web applications for a number of clients. He does a majority of his work from his home office, but he frequently drives to the client site to meet with h

Salary, what is the rule of travelling allowance of 2013-14

what is the rule of travelling allowance of 2013-14

Capital gains tax, Joe Smyth further advises you on the following transacti...

Joe Smyth further advises you on the following transaction - work out the resultant capital gains tax consequences.  Then calculate Joe's net capital gain for the 2010/11 income

Change in estimate using the reallocation method, Consider the following sc...

Consider the following scenarios: a) Audit fees received by an auditing firm. b) Final ordinary dividend received. Dividends are declared on 31 December and are payable to sh

Calculate taxable income, Caroline is a 55-year-old Australian resident. Sh...

Caroline is a 55-year-old Australian resident. She  is the chief marketing officer based in Sydney for XYZ Limited (XYZ), a public company listed on the Australian Securities Excha

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