At the end of the current period, JAG Co. has a defined benefit obligation of €125,000 and pension plan assets with a fair value of €98,000. The amount of the vested benefits for the plan is €95,000. What amount and account(s) related to its pension plan will be reported on the company's statement of financial position? O a. €27,000 O b. €220,000 O c. €30,000 O d. €223,000

At the end of the current period, JAG Co. has a defined benefit obligation of €125,000 and pension plan assets with a fair value of €98,000. The amount of the vested benefits for the plan is €95,000. What amount and account(s) related to its pension plan will be reported on the company's statement of financial position? O a. €27,000 O b. €220,000 O c. €30,000 O d. €223,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 7RE

See similar textbooks

Similar questions

At the end of the current year, Top Co. has a defined benefit obligation of £335,000 and pension plan assets with a fair value of £345,000. The amount of the vested benefits for the plan is £225,000. Top Co. has a liability gain of £8,300. What amount and account(s) related to its pension plan will be reported on the company's statement of financial position? O a. £233,300 O b. £243,300 Ос. £20,000 d. £10,000
Herring Wholesale Company has a defined benefit pension plan. On January 1, 2024, the following pension related data were available: Net gain-AOCI Accumulated benefit obligation Projected benefit obligation Fair value of plan assets Average remaining service period of active employees (expected to remain constant for the next several years) 1. Amount amortized to 2024 pension expense 2. Pension expense 3. Net gain ($ in thousands) $ 349 3,070 3,100 2,600 The rate of return on plan assets during 2024 was 9%, although it was expected to be 10%. The actuary revised assumptions regarding the PBO at the end of the year, resulting in a $42,000 decrease in the estimate of that obligation. Required: 1. Calculate any amortization of the net gain that should be included as a component of net pension expense for 2024. 2. Assume the net pension expense for 2024, not including the amortization of the net gain component, is $344,000. What is pension expense for the year? 3. Determine the net…
Presented below is information related to Noble Inc. as of December 31, 2019. Net gain/loss £ 90,000; Defined benefit obligation 3,600,000; Vested benefits 1,620,000; Plan assets (at fair value) 3,384,000. The amount reported as the pension liability on Noble's statement of financial position at December 31, 2019 is as follows: Select one: a. £ -0-. b. £216,000. C. £126,000. d. £90,000.
At the end of the current period, Oxford Ltd. has a defined benefit obligation of $195,000 and pension plan assets with a fair value of $110,000. The amount of the vested benefits for the plan is $105,000. What amount related to its pension plan will be reported on the company's statement of financial position? a. $5,000. b. $90,000. c. $85,000. d. $20,000.
Penben Corporation has a defi ned benefi t pension plan. At 31 December, its pension obligation is €10 million and pension assets are €9 million. Under either IFRS or US GAAP,the reporting on the balance sheet would be closest to which of the following?A . €10 million is shown as a liability, and €9 million appears as an asset.B . €1 million is shown as a net pension obligation.C . Pension assets and obligations are not required to be shown on the balance sheet butonly disclosed in footnotes.
rane importers provides the following pension plan Fair value of pension plan assets, January 1, 2025 Fair value of pension plan assets, December 31, 2025 Contributions to the plan in 2025 Benefits paid retirees in 2025 Tormation. Actual return on plan assets for 2025 $ $2,575,000 2,914,000 299,000 366,000 From the data above, compute the actual return on the plan assets for 2025.
On January 1, 2026, Pharoah Co. has the following balances: Projected benefit obligation Fair value of plan assets Service cost The settlement rate is 11%. Other data related to the pension plan for 2026 are: $3650000 Amortization of prior service costs Contributions Benefits paid Actual return on plan assets Amortization of net gain 2350000 $3173000. $988000. O $1650000. O $3010000. $ 340000 90000 465000 190000 385000 18000 The fair value of plan assets disclosed in the notes at December 31, 2026 is
Caroni Ltd has a defined benefit pension plan for its employees. In 2016, the following actuarial report was received for the defined benefit plan:2016/$Present value of the defined benefit obligation 31 December 201510 000 000Net interest?Current service cost1 150 000Benefits paid1 200 000Actuarial gain/loss on DBO?Present value of the defined benefit obligation 31 December 201610 750 000Fair value of plan assets at 31 December 20159 500 000Return on plan assets?Contributions paid to the plan during the year1 000 000Benefits paid by the plan during the year1 200 000Fair value of plan assets at 31 December 201610 047 500Additional information(a) All contributions received by the plan were paid by Caroni Ltd.(b) The interest rate used to measure the present value of the defined benefit obligation was 9% at 31 December 2015 and 31 December 2016.(c) The asset ceiling was nil at 31 December 2015 and 31 December 2016.Requirements:a)Determine the surplus or deficit of Caroni Ltd.’s defined…
Presented below is pension information related to Sheridan Company as of December 31, 2021: Accumulated benefit obligation Projected benefit obligation Plan assets (at fair value) Accumulated OCI (G/L) $ 3264000 O Pension Asset of $293000. O Pension Liability of $593000. Pension Liability of $293000. Pension Asset of $886000. 3857000 4150000 113000 The amount to be reported as Pension Asset / Liability as of December 31, 2021 is
Caroni Ltd has a defined benefit pension plan for its employees. In 2016, the following actuarial report was received for the defined benefit plan:2016/$Present value of the defined benefit obligation 31 December 201510 000 000Net interest?Current service cost1 150 000Benefits paid1 200 000Actuarial gain/loss on DBO?Present value of the defined benefit obligation 31 December 201610 750 000Fair value of plan assets at 31 December 20159 500 000Return on plan assets?Contributions paid to the plan during the year1 000 000Benefits paid by the plan during the year1 200 000Fair value of plan assets at 31 December 201610 047 500Additional information(a) All contributions received by the plan were paid by Caroni Ltd.(b) The interest rate used to measure the present value of the defined benefit obligation was 9% at 31 December 2015 and 31 December 2016.(c) The asset ceiling was nil at 31 December 2015 and 31 December 2016.Requirements:a) Determine the surplus or deficit of Caroni Ltd.’s defined…
Presented below is information related to Blossom Manufacturing Company as of December 31, 2021: Projected benefit obligation $ 1600000 Accumulated OCI -net gain 580000 Accumulated OCI (PSC) 790000 The amount for the prior service cost is related to an increase in benefits. The fair value of the pension plan assets is $1102000.The pension asset / liability reported on the balance sheet at December 31, 2021 is: pension liability of $1102000. Pension liability of $498000. Pension liability of $2390000. Pension liability of $1600000.
The following information relates to the pension plan for the employees of Blossom Co.: Accum, beneht obligation Projected benefit obligation Fair value of plan assets AOCI - net (gain) or loss Settlement rate (for year) Expected rate of return (for year) 1/1/20 The corridor for 2021 is $10240000 10765000 9925000 -0- 12/31/20 $10660000 11458000 11920000 (1612000) 9% 9% 12/31/21 $ 13600000 15007000 13054000 (1780000) 9% 8% Blossom estimates that the average remaining service life is 16 years. Blossom's contribution was $1423000 in 2021 and benefits paid were $1087000.