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Eric Co has a defined benefit pension plan that specifies annual rentirment benefits equal to:...

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Accounting

Eric Co has a defined benefit pension plan that specifies annual rentirment benefits equal to: 1.6 x service years x final years salary. Jessica Davis was hired by Eric co at the beggining of 2000. Davis is expected to retire at the end of 2044 after 45 years. Her retirement is expected to span 18 years. At the end of the year 2023, 24 years after being hired, her salary is $85,000. The company actuary projects Davis salary to be 190,000 at retirement. The actuary discount rate is 7%.

Required:

1. Estimate the amount of Jessica annual retirement payments for the 18 retirement years earned as of end of 2023.

2. What is the company projected benefit obligation at the end of 2023 with respect to Jessica Davis.

3. What is the company service cost for 2024 with respect to Jessica Davis

4. What is the company intrest cost for 2024 with respect to Jessica Davis

5. Using your answer from all questions above, determing the company projected benefit obligation at the end of 2024 (after 25 years of service) with respect to Jessica Davis.

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