On January 1, 2016 the Wolfie Co. adopted a defined benefit plan for its employees. All the
Question:
On January 1, 2016 the Wolfie Co. adopted a defined benefit plan for its employees. All the employees are the same age, retire at the same time, and have the same life expectancy after retirement. The following are the relevant facts concerning the plan:
Annual pension benefit each year of
service for each employee $80,000
Amount funded on each December 31 Annual Service Cost
Discount rate 12%
Actual return on plan assets 10%
Number of employees 20
Years to retirement (at end of 2016) 20
Years of life expectancy after retire. 12
There are no gains/losses or prior service costs. For each year the actual return on plan assets was equal to the expected return.
Compute the following amounts for the total of all employees, and fill-in your answers in the space below.
1. Service Cost, 2016 is $ .
2. Service Cost, 2017 is $ .
3. UAPC, 12/31/17 is $ .
4. PBO, 1/1/18 is $ .
5. PA, 1/1/18 is $ .
6. UAPC, 12/31/18 is $ .
7. PBO, 1/1/19 is $ .
Expert Answer:
Question analysis nation Service for each employee 80000 but their are 20 employees Discount ... View the full answer
