Benefit formula: 2% years of service highest salary prior to retirement Additional facts about the plan (as of December 31, 2020): Sumeet's years of service provided so far, as of December 31, 2020: 8 years Sumeet's expected retirement date: December 31, 2030. Sumeet's life expectancy after retirement: 20 years Sumeet's salary for 2020: $600,000 Sumeet's expected highest salary prior to retirement: $900,000 Settlement rate: 4% Expected rate of return on plan assets: 7% Determine the service cost component of Austin Yard's annual pension expense for 2020 (round your final answer to the nearest $1,000)

Answer rating: 100% (QA)

Years of service as of December 31 2020 8 years Expected retirement date December 31 2030 Life expec... View the full answer