Mary Abbott is a long-time employee of Love Enterprises, a manufacturer and distributor of farm implements....

Mary Abbott is a long-time employee of Love Enterprises, a manufacturer and distributor of farm implements. Abbott plans to retire on her 65th birthday, 5 years from Jan.1,2017. Her salary at Jan.1,2017 is $48,000 per year, and her projected salary for her last year of employment is $60,000.

Love Enterprises sponsors a defined benefit pension plan. It provides for an annual pension benefit equal to 60% of the employee's annual salary at retirment. Payments commence 1 year after the anniversay date of hos or her retirement. The discount and earnings rate on plan assets is 8%. The average life expectancy for employees is 80. Using PVof 1, PVAD of1, and PVOA of 1.(usethe appropriate factor from the tables provided).

Required:

1. Compute the PBO related to Abbott's pension benefits as of January 1, 2017.

2. Compute the ABO for the year ended December 31, 2017.

Expert Solution

ekkarill92 answered 2 years ago

HT Corporation, a manufacturer of heavy trucks had a long, sad and bitter history of employee...

HT Corporation, a manufacturer of heavy trucks had a long, sad and bitter history of employee relations. The company openly practiced "management through terrorism". Engineers and technicians dominated the culture. One of the company's assembly plants devoted major resources to statistical process control. An entire department staffed with engineers and Quality specialists justified its existence by keeping control charts. The engineers collected and stored data on a computer and posted the charts in every production department once each week. They...

As a new sales representative for Madmel Enterprises, you take a long time customer out to...

As a new sales representative for Madmel Enterprises, you take a long time customer out to dinner and drinks. before dinner is over, buy after sharing a couple rounds of top-shelf tequila, you have shaken hands on a deal to sell the customer nearly a one and half million dollars worth of industrial equipment. Madmel Enterprises is the only supplier of this industrial equipment. you have orally agreed on the essential terms of the deal such as price, quantity, delivery,...

Wearwell Carpet Company is a small residential carpet manufacturer started by Don Stegall, a long-time engineer...

Wearwell Carpet Company is a small residential carpet manufacturer started by Don Stegall, a long-time engineer and manager in the carpet industry. Stegall began Wearwell in the early 1990s after learning about ABC, JIT, total quality management, and several other manufacturing concepts being used successfully in Japan and other parts of the world. Although it was a small company, he believed that with his many years of experience and by applying these advanced techniques, Wearwell could very quickly become a...

Question

Mary Abbott is a long-time employee of Love Enterprises, a manufacturer and distributor of farm implements....

Solutions

Expert Solution

Related Solutions

HT Corporation, a manufacturer of heavy trucks had a long, sad and bitter history of employee...

As a new sales representative for Madmel Enterprises, you take a long time customer out to...

Wearwell Carpet Company is a small residential carpet manufacturer started by Don Stegall, a long-time engineer...