Business, 31.03.2021 03:40 cathyfrawley

Stanley Mills was hired by Clark at the beginning of 2002. Mills is expected to retire at the end of 2046 after 45 years of service. His retirement is expected to span 15 years. At the end of 2021, 20 years after being hired, his salary is $96,000. The company’s actuary projects Mills’s salary to be $430,000 at retirement. The actuary’s discount rate is 6%. Required:
a. Estimate the amount of Stanley Mills's annual retirement payments for the 15 retirement years earned as of the end of 2013.
b. Suppose Clark's pension plan permits a lump-sum payment at retirement in lieu of annuity payments. Determine the lump-sum equivalent as the present value as of the retirement date of annuity payments during the retirement period.
c. What is the company's projected benefit obligation at the end of 2013 with respect to Stanley Mills?
d. Even though pension accounting centers on the PBO calculation, the ABO still must be disclosed in the pension disclosure note. What is the company's accumulated benefit obligation at the end of 2013 with respect to Stanley Mills?
e. If we assume no estimates change in the meantime, what is the company's projected benefit obligation at the end of 2014 with respect to Stanley Mills?
f. What portion of the 2014 increase in the PBO is attributable to 2014 service (the service cost component of pension expense) and to accrued interest (the interest cost component of pension expense)?

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 23:20

On october 2, 2016 starbucks corporation reported, on its form 10-k, the following (in millions): total assets $14,329.5 total stockholders' equity 5,890.7 total current liabilities 4,546.9 what did starbucks report as total liabilities on october 2, 2016? select one: a. $12,516.7 million b. $6,377.3 million c. $995.0 million d. $8,438.8 million e. none of the above

Answers: 2

Answer

Business, 22.06.2019 10:00

Your uncle is considering investing in a new company that will produce high quality stereo speakers. the sales price would be set at 1.5 times the variable cost per unit; the variable cost per unit is estimated to be $75.00; and fixed costs are estimated at $1,200,000. what sales volume would be required to break even, i.e., to have ebit = zero?

Answers: 1

Answer

Business, 22.06.2019 12:30

Suppose a holiday inn hotel has annual fixed costs applicable to its rooms of $1.2 million for its 300-room hotel, average daily room rents of $50, and average variable costs of $10 for each room rented. it operates 365 days per year. the amount of operating income on rooms, assuming an occupancy* rate of 80% for the year, that will be generated for the entire year is *occupancy = % of rooms rented

Answers: 1

Answer

Business, 22.06.2019 13:30

What do you recommend adam do to increase production in a business setting that does not seem to value high productivity?

Answers: 3

Answer

You know the right answer?

Stanley Mills was hired by Clark at the beginning of 2002. Mills is expected to retire at the end of...

Questions