Pina Ltd. has a one-person pension plan that promises the employee a pension on retirement according...
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Pina Ltd. has a one-person pension plan that promises the employee a pension on retirement according to the following formula: pension benefit = 2% of final salary per year of service. The employee began employment with Pina in January 2009 at the age of 30. She expects to retire in January 2038, the month of the year in which she turns 60. Her life expectancy at that time is 25 years. Assume that this employee earned an annual salary of $45,500 when she joined Pina, that her salary was expected to increase at a rate of 4% per year, and that this remains a reasonable assumption to date. Pina considers a discount rate of 4% to be appropriate. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. X Your answer is incorrect. What is the employee's expected final salary? (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to O decimal places eg. 58,971.) 131193 The employee's expected final salary %24 What amount of current service cost should Pina recognize in 2020 relative to this plan? Use PV tables, a financial calculator or Excel functions to arrive at the answer. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to O decimal places e.g. 58,971.) 1457 Current service cost eTextbook and Media Assistance Used eTextbook X Your answer is incorrect. What is the amount of the defined benefit obligation at December 31, 2020? (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.) 2$ Defined benefit obligation TABLE PV.2 Present Value of an Annuity of 1 1 PV = 1- (1+ i)" ! (n) Periods 2% 22% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 15% 1 0.98039 0.97561 0.97087 0.96154 0.95238 0.94340 0.93458 0.92593 0.91743 0.90909 0.90090 0.89286 0.86957 2 1.94156 1.92742 1.91347 1.88609 1.85941 1.83339 1.80802 1.78326 1.75911 1.73554 1.71252 1.69005 1.62571 3 2.88388 2.85602 2.82861 2.77509 2.72325 2.67301 2.62432 2.57710 2.53130 2.48685 2.44371 2.40183 2.28323 4 3.80773 3-76197 3.71710 3.62990 3.54595 3.46511 3.38721 3.31213 3.23972 3.16986 3.10245 3.03735 2.85498 4.71346 4.64583 4:57971 4.45182 4.32948 4.21236 4.10020 3.99271 3.88965 3-79079 3.69590 3.60478 3-35216 6 5.60143 5-50813 5.41719 5.24214 5.07569 4.91732 4.76654 4.62288 4.48592 4:35526 4.23054 4.11141 3.78448 7 6.47199 6.34939 6.23028 6.00205 5.78637 5.58238 5-38929 5.20637 5.03295 4.86842 4.71220 4.56376 4.16042 8 7.32548 7.170o14 7.01969 6.73274 6.46321 6.20979 5.97130 5.74664 5-53482 5.33493 5.14612 4.96764 4.48732 8.16224 7.97087 7:78611 7.43533 7.10782 6.80169 6.51523 6.24689 5.99525 5-75902 5-53705 5-32825 4.77158 10 8.98259 8.75206 8.53020 8.11090 7.72173 7:36009 7.02358 6.71008 6.41766 6.14457 5.88923 5.65022 5.01877 11 9.78685 9.51421 9.25262 8.76048 8.30641 7.88687 7.49867 7.13896 6.80519 6.49506 6.20652 5-93770 5.23371 12 10.57534 10.25776 9.95400 9.38507 8.86325 8.38384 7.94269 7.53608 7.16073 6.81369 6.49236 6.19437 5-42062 13 11.34837 10.98319 10.63496 9.98565 9.39357 8.85268 8.35765 7.90378 7.48690 7.10336 6.74987 6.42355 5-58315 14 12.10625 11.69091 11.29607 10.56312 9.89864 9.29498 8.74547 8.24424 7:78615 7:36669 6.98187 6.62817 5.72448 15 12.84926 12.38138 11.93794 11.11839 10.37966 9.71225 9.10791 8.55948 8.06069 7.60608 7.19087 6.81086 5.84737 16 13.57771 13.05500 12.56110 11.65230 10.83777 10.10590 9.44665 8.85137 8.31256 7.82371 7.37916 6.97399 5-95424 17 14.29187 13.71220 13.16612 12.16567 11.27407 10.47726 9.76322 9.12164 8.54363 8.02155 7-54879 7.11963 6.04716 18 14.99203 14.35336 13.75351 12.65930 11.68959 10.82760 10.05909 9.37189 8.75563 8.20141 7.70162 7.24967 6.12797 19 15.67846 14.97889 14.32380 13.13394 12.08532 11.15812 10.33560 9.60360 8.95012 8.36492 7.83929 7.36578 6.19823 20 16.35143 15.58916 14.87747 13.-59033 12.46221 11.46992 10.59401 9.81815 9.12856 8.51356 7.96333 7.46944 6.25933 TABLE PV.1 Present Value of 1 (п) periods 2% 22% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 15% 1 0.98039 0.97561 0.97087 0.96156 0.95238 0.94340 0.93458 0.92593 0.91743 0.90909 0.90090 0.89286 0.86957 0.96117 0.95181 o.94260 0.92456 0.90703 0.89000 0.87344 0.85734 0.84168 0.82645 0.81162 0.79719 0.75614 3 0.94232 0.92860 0.91514 0.88900 0.86384 0.83962 0.81630 0.79383 0.77218 0.75132 0.73119 0.71178 0.65752 4 0.92385 0.90595 0.88849 0.85480 0.82270 0.79209 0.76290 0.73503 0.70843 0.68301 0.65873 0.63552 0.57175 0.90583 0.88385 0.86261 0.82193 0.78353 0.74726 0.71299 0.68058 0.64993 0.62092 0.59345 0.56743 0.49718 0.88797 0.86230 0.83748 0.79031 0.74622 0.70496 0.66634 0.63017 0.59627 0.56447 0.53464 0.50663 0.43233 0.87056 0.84127 0.81309 0.75992 0.71068 0.66506 0.62275 0.58349 0.54703 0.51316 0.48166 0.45235 0.37594 0.85349 0.82075 0.78941 0.73069 0.67684 0.62741 0.58201 0.54027 0.50187 0.46651 0.43393 0.40388 0.32690 9 0.83676 0.80073 0.76642 0.70259 0.64461 0.59190 0.54393 0.50025 0.46043 0.42410 0.39092 0.36061 0.28426 10 0.82035 0.78120 0.74409 0.67556 0.61391 0.55839 0.50835 0.46319 0.42241 0.38554 0.35218 0.32197 0.24719 11 0.80426 0.76214 0.72242 0.64958 0.58468 0.52679 0.47509 0.42888 0.38753 0.35049 0.31728 0.28748 0.21494 12 0.78849 0.74356 0.70138 0.62460 0.55684 0.49697 0.444o1 0.39711 0.35554 0.31863 o0.28584 0.25668 0.18691 13 0.77303 0.72542 0.68095 0.60057 0.53032 0.46884 0.41496 0.36770 0.32618 0.28966 0.25751 0.22917 0.16253 14 0.75788 0.70773 0.66112 o.57748 0.50507 0.44230 0.38782 0.34046 0.29925 0.26333 0.23199 0.20462 0.14133 15 0.74301 0.69047 0.64186 o.55526 0.48102 0.41727 0.36245 0.31524 0.27454 0.23939 0.20900 0.18270 0.12289 16 0.72845 0.67362 0.62317 0.53391 0.45811 0.39365 0.33873 0.29189 0.25187 0.21763 0.18829 0.16312 0.10687 17 0.71416 0.65720 0.60502 0.51337 0.4363o 0.37136 0.31657 0.27027 0.23107 0.19785 0.16963 0.14564 0.09293 18 0.70016 0.64117 0.58739 0.49363 0.41552 0.35034 0.29586 0.25025 0.21199 0.17986 0.15282 0.13004 0.08081 19 0.68643 0.62553 0.57029 0.47464 0.39573 0.33051 0.27651 0.23171 0.19449 0.16351 0.13768 0.11611 0.07027 20 0.67297 0.61027 0.55368 0.45639 0.37689 0.31180 0.25842 0.21455 0.17843 0.14864 o.12403 0.10367 0.06110 Pina Ltd. has a one-person pension plan that promises the employee a pension on retirement according to the following formula: pension benefit = 2% of final salary per year of service. The employee began employment with Pina in January 2009 at the age of 30. She expects to retire in January 2038, the month of the year in which she turns 60. Her life expectancy at that time is 25 years. Assume that this employee earned an annual salary of $45,500 when she joined Pina, that her salary was expected to increase at a rate of 4% per year, and that this remains a reasonable assumption to date. Pina considers a discount rate of 4% to be appropriate. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. X Your answer is incorrect. What is the employee's expected final salary? (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to O decimal places eg. 58,971.) 131193 The employee's expected final salary %24 What amount of current service cost should Pina recognize in 2020 relative to this plan? Use PV tables, a financial calculator or Excel functions to arrive at the answer. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to O decimal places e.g. 58,971.) 1457 Current service cost eTextbook and Media Assistance Used eTextbook X Your answer is incorrect. What is the amount of the defined benefit obligation at December 31, 2020? (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.) 2$ Defined benefit obligation TABLE PV.2 Present Value of an Annuity of 1 1 PV = 1- (1+ i)" ! (n) Periods 2% 22% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 15% 1 0.98039 0.97561 0.97087 0.96154 0.95238 0.94340 0.93458 0.92593 0.91743 0.90909 0.90090 0.89286 0.86957 2 1.94156 1.92742 1.91347 1.88609 1.85941 1.83339 1.80802 1.78326 1.75911 1.73554 1.71252 1.69005 1.62571 3 2.88388 2.85602 2.82861 2.77509 2.72325 2.67301 2.62432 2.57710 2.53130 2.48685 2.44371 2.40183 2.28323 4 3.80773 3-76197 3.71710 3.62990 3.54595 3.46511 3.38721 3.31213 3.23972 3.16986 3.10245 3.03735 2.85498 4.71346 4.64583 4:57971 4.45182 4.32948 4.21236 4.10020 3.99271 3.88965 3-79079 3.69590 3.60478 3-35216 6 5.60143 5-50813 5.41719 5.24214 5.07569 4.91732 4.76654 4.62288 4.48592 4:35526 4.23054 4.11141 3.78448 7 6.47199 6.34939 6.23028 6.00205 5.78637 5.58238 5-38929 5.20637 5.03295 4.86842 4.71220 4.56376 4.16042 8 7.32548 7.170o14 7.01969 6.73274 6.46321 6.20979 5.97130 5.74664 5-53482 5.33493 5.14612 4.96764 4.48732 8.16224 7.97087 7:78611 7.43533 7.10782 6.80169 6.51523 6.24689 5.99525 5-75902 5-53705 5-32825 4.77158 10 8.98259 8.75206 8.53020 8.11090 7.72173 7:36009 7.02358 6.71008 6.41766 6.14457 5.88923 5.65022 5.01877 11 9.78685 9.51421 9.25262 8.76048 8.30641 7.88687 7.49867 7.13896 6.80519 6.49506 6.20652 5-93770 5.23371 12 10.57534 10.25776 9.95400 9.38507 8.86325 8.38384 7.94269 7.53608 7.16073 6.81369 6.49236 6.19437 5-42062 13 11.34837 10.98319 10.63496 9.98565 9.39357 8.85268 8.35765 7.90378 7.48690 7.10336 6.74987 6.42355 5-58315 14 12.10625 11.69091 11.29607 10.56312 9.89864 9.29498 8.74547 8.24424 7:78615 7:36669 6.98187 6.62817 5.72448 15 12.84926 12.38138 11.93794 11.11839 10.37966 9.71225 9.10791 8.55948 8.06069 7.60608 7.19087 6.81086 5.84737 16 13.57771 13.05500 12.56110 11.65230 10.83777 10.10590 9.44665 8.85137 8.31256 7.82371 7.37916 6.97399 5-95424 17 14.29187 13.71220 13.16612 12.16567 11.27407 10.47726 9.76322 9.12164 8.54363 8.02155 7-54879 7.11963 6.04716 18 14.99203 14.35336 13.75351 12.65930 11.68959 10.82760 10.05909 9.37189 8.75563 8.20141 7.70162 7.24967 6.12797 19 15.67846 14.97889 14.32380 13.13394 12.08532 11.15812 10.33560 9.60360 8.95012 8.36492 7.83929 7.36578 6.19823 20 16.35143 15.58916 14.87747 13.-59033 12.46221 11.46992 10.59401 9.81815 9.12856 8.51356 7.96333 7.46944 6.25933 TABLE PV.1 Present Value of 1 (п) periods 2% 22% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 15% 1 0.98039 0.97561 0.97087 0.96156 0.95238 0.94340 0.93458 0.92593 0.91743 0.90909 0.90090 0.89286 0.86957 0.96117 0.95181 o.94260 0.92456 0.90703 0.89000 0.87344 0.85734 0.84168 0.82645 0.81162 0.79719 0.75614 3 0.94232 0.92860 0.91514 0.88900 0.86384 0.83962 0.81630 0.79383 0.77218 0.75132 0.73119 0.71178 0.65752 4 0.92385 0.90595 0.88849 0.85480 0.82270 0.79209 0.76290 0.73503 0.70843 0.68301 0.65873 0.63552 0.57175 0.90583 0.88385 0.86261 0.82193 0.78353 0.74726 0.71299 0.68058 0.64993 0.62092 0.59345 0.56743 0.49718 0.88797 0.86230 0.83748 0.79031 0.74622 0.70496 0.66634 0.63017 0.59627 0.56447 0.53464 0.50663 0.43233 0.87056 0.84127 0.81309 0.75992 0.71068 0.66506 0.62275 0.58349 0.54703 0.51316 0.48166 0.45235 0.37594 0.85349 0.82075 0.78941 0.73069 0.67684 0.62741 0.58201 0.54027 0.50187 0.46651 0.43393 0.40388 0.32690 9 0.83676 0.80073 0.76642 0.70259 0.64461 0.59190 0.54393 0.50025 0.46043 0.42410 0.39092 0.36061 0.28426 10 0.82035 0.78120 0.74409 0.67556 0.61391 0.55839 0.50835 0.46319 0.42241 0.38554 0.35218 0.32197 0.24719 11 0.80426 0.76214 0.72242 0.64958 0.58468 0.52679 0.47509 0.42888 0.38753 0.35049 0.31728 0.28748 0.21494 12 0.78849 0.74356 0.70138 0.62460 0.55684 0.49697 0.444o1 0.39711 0.35554 0.31863 o0.28584 0.25668 0.18691 13 0.77303 0.72542 0.68095 0.60057 0.53032 0.46884 0.41496 0.36770 0.32618 0.28966 0.25751 0.22917 0.16253 14 0.75788 0.70773 0.66112 o.57748 0.50507 0.44230 0.38782 0.34046 0.29925 0.26333 0.23199 0.20462 0.14133 15 0.74301 0.69047 0.64186 o.55526 0.48102 0.41727 0.36245 0.31524 0.27454 0.23939 0.20900 0.18270 0.12289 16 0.72845 0.67362 0.62317 0.53391 0.45811 0.39365 0.33873 0.29189 0.25187 0.21763 0.18829 0.16312 0.10687 17 0.71416 0.65720 0.60502 0.51337 0.4363o 0.37136 0.31657 0.27027 0.23107 0.19785 0.16963 0.14564 0.09293 18 0.70016 0.64117 0.58739 0.49363 0.41552 0.35034 0.29586 0.25025 0.21199 0.17986 0.15282 0.13004 0.08081 19 0.68643 0.62553 0.57029 0.47464 0.39573 0.33051 0.27651 0.23171 0.19449 0.16351 0.13768 0.11611 0.07027 20 0.67297 0.61027 0.55368 0.45639 0.37689 0.31180 0.25842 0.21455 0.17843 0.14864 o.12403 0.10367 0.06110
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Solution 1Employees Expected Final Salary141899 Workings Beginning of Employment2009 At the age 33 R... View the full answer
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5th edition
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