Clark Industries has a defined benefit pension plan that specifies annual, year$-$end retirement benefits Answer is not complete.

equal to:

$1\mathrm{.}3\%$ Service years $$ Final year's salary

Stanley Mills was hired by Clark at the beginning of $2005.$

Mills is expected to retire at the end of $2049$ after $45$ years of service.

His retirement is expected to span $15$ years. At the end of $2024,20$ 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 $6\%.$

For all requirements, round final answers to the nearest whole dollars. Do not round intermediate

calculations. Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$

FVAD of $$1$ and PVAD of $$1)$

Required:

Estimate the amount of Stanley Mills's annual retirement payments for the $15$ retirement years

earned as of the end of $2024.$

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 earned retirement

annuity at the expected date of retirement $($the end of $2049).$

What is the company's projected benefit obligation at the end of $2024$ with respect to Stanley

Mills?

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

$2024$ with respect to Stanley Mills?

If we assume no estimates change in the meantime, what is the company's projected benefit

obligation at the end of $2025$ with respect to Stanley Mills?

What portion of the $2025$ increase in the PBO is attributable to $2025$ service $($the service cost

component of pension expense$)$ and to accrued interest $($the interest cost component of pension

expense$)?$