Buckeyes defined benefit pension plan specifies annual retirement benefits equal to: 2.0% × service years × final year’s salary, payable at the end of each year. James was hired by Buckeyes at the beginning of 2004 and is expected to retire at the end of 2033 after 30 years’ service. His retirement is expected to span 20 years. James’ salary is projected to be $250,000 at retirement. The actuary’s discount rate is 6%. At the beginning of 2014, the pension formula was amended to:
1.75% × Service years × Final year’s salary
The amendment was made retroactive to apply the increased benefits to prior service years.

Required:
a. What is the company’s prior service cost at the beginning of 2014 with respect to Davenport after the amendment described above?
b. Since the amendment occurred at the beginning of 2014, amortization of the prior service cost begins in 2014. What is the prior service cost amortization that would be included in pension expense?
c. What is the service cost for 2014 with respect to Davenport?
d. What is the interest cost for 2014 with respect to Davenport?
e. Calculate pension expense for 2014 with respect to Davenport, assuming plan assets attributable to her of $150,000 and a rate of return (actual and expected) of 10%.

Acompany set up a petty cash fund with $800. the disbursements are as follows: office supplies $300 shipping $50 postage $30 delivery expense $350 to create the fund, which account should be credited? a. postage b. cash at bank c. supplies d. petty cash

Susan is a 5th grade teacher and loves getting up every day and going to work to teach her students. this is an example of a. extrinsic value b. interests c. intrinsic value d. external value

Blue computers, a major pc manufacturer in the united states, currently has plants in kentucky and pennsylvania. the kentucky plant has a capacity of 1 million units a year and the pennsylvania plant has a capacity of 1.5 million units a year. the firm divides the united states into five markets: northeast, southeast, midwest, south, and west. each pc sells for $1,000. the firm anticipates a 50 perc~nt growth in demand (in each region) this year (after which demand will stabilize) and wants to build a plant with a capacity of 1.5 million units per year to accommodate the growth. potential sites being considered are in north carolina and california. currently the firm pays federal, state, and local taxes on the income from each plant. federal taxes are 20 percent of income, and all state and local taxes are 7 percent of income in each state. north carolina has offered to reduce taxes for the next 10 years from 7 percent to 2 percent. blue computers would like to take the tax break into consideration when planning its network. consider income over the next 10 years in your analysis. assume that all costs remain unchanged over the 10 years. use a discount factor of 0.1 for your analysis. annual fixed costs, production and shipping costs per unit, and current regional demand (before the 50 percent growth) are shown in table 5-13. (a) if blue computers sets an objective of minimizing total fixed and variable costs, where should they build the new plant? how should the network be structured? (b) if blue computers sets an objective of maximizing after-tax profits, where should they build the new plant? how should the network be structured? variable production and shipping cost ($/unit) annual fixed cost northeast southeast midwest south west (million$) kentucky 185 180 175 175 200 150 pennsylvania 170 190 180 200 220 200 n. carolina 180 180 185 185 215 150 california 220 220 195 195 175 150 demand ('000 units/month) 700 400 400 300 600