For the current year, a company with a DB pension plan has service cost $106,000; benefits paid $74,000; and loss on PBO of $28,000. Assuming an ending PBO of $400,000 and interest rate of 5%, the beginning PBO balance was
Q: ABC Company provided the following information for the current year: Projected Benefit Obligation,…
A: Interest costs = Projected Benefit Obligation, January 1 x discount rate = 3500000 x 10% = 350,000
Q: At the end of the current period, Agler Inc. had a projected benefit obligation of $400,000 and…
A:
Q: Presented below is information related to the pension plan of Sandhill Inc. for the year 2021. 1.…
A: CALCULATION OF PENSION EXPENSE SERVICE COST = $250000 INTEREST ON PROJECT BENEFIT OBLIGATION (10% X…
Q: The following information relates to the defined benefit pension plan for the employees of a…
A: 1) Calculation of accumulated OCI gains amortized in 2021 -
Q: Under the defined-benefit pension plan for a company, the expected return on plan assets is $124,000…
A: Ans. Where any differences occurs between the actual return on plan assets and expected returns on…
Q: At the end of the current year, Top Co. has a defined benefit obligation of £335,000 and pension…
A: Pension Fund The purpose of creating the pension fund is to some of the small portion of amount…
Q: ABC Company provided the following information for the current year: · Projected Benefit…
A: Interest costs = Projected Benefit Obligation, January 1 x discount rate = 3500000 x 10% = 350,000
Q: Pension data for the Ben Franklin Company include the following for the current calendar year:…
A: Journal: Recording of a business transactions in a chronological order.
Q: At the end of the current period, JAG Co. has a defined benefit obligation of €125,000 and pension…
A: Amount of pension plan = Beginning defined benefit obligation - amount of the vested benefit for the…
Q: Burrito Corporation has a defined benefit pension plan. Burrito received the following information…
A: Pension refers to a fund that is paid to the employees at the time of retirement funded by the…
Q: The following information is related to the pension plan of B, Inc. for 2016. Actual return on plan…
A: Service cost 800,000 Interest on defined benefit obligation 326500 net gain on liability -82500…
Q: The following information relates to the defined benefit pension plan for the employees of a…
A: The return on plan assets include interest income and fair value changes and it excludes the cost…
Q: The following information relates to the defined benefit pension plan for the employees of a…
A: Given: Projected benefit obligation on 12/31/20 =$300000Fair value of plan assets on…
Q: Strum Corp. has maintained a defined benefit pension plan for its employees for a number of years.…
A: Pension is defined as the fixed value delivered to an individual usually after retirement at a…
Q: Gruber Enterprises started its defined benefit pension plan on January 1, Year 1. By the beginning…
A: Fair market value It is the price, an asset would be sold in an open market when certain covenants…
Q: A company's defined benefit pension plan had a projected benefit obligation (PBO) of $350,000 on…
A: Introduction: A projected benefit obligation (PBO) is the expected present value of an employee's…
Q: For the current year, Clark Company has the following information. Beginning plan assets was $1,000,…
A: Defined Pension Obligation Defined pension obligation which is described as implemented scheme to…
Q: For Skysong Corporation, year-end plan assets were $ 2,000,000. At the beginning of the year, plan…
A: Formula: Return on plan Assets = Ending plan Assets - Beginning plan Assets - Contributions +…
Q: For Warren Corporation, year-end plan assets were $2,000,000. At the beginning of the year, plan…
A:
Q: Pension data for Fahy Transportation Inc., include the following:…
A: Particulars Amount Plan assets (fair value), December 31 $750 million Add: Benefit payments to…
Q: A corporation provides a defined benefit pension plan to its employees; the settlement rate is 8%…
A: Defined Pension Benefit For Calculating the defined benefit plan first to calculate the total…
Q: On January 1, 2015, Parks Co. has the following balances: Projected benefit obligation $4,200,000…
A: projected benefit obligation:- Projected Benefit obligation add: Service cost less: Benefit…
Q: A company had the following information at the end of 2021: Accumulated benefit obligation…
A: Formula: Pension liability = Projected benefit obligation - Fair value of pension plan Assets.
Q: On January 1 of the current reporting year, Coda Company's projected benefit obligation was $30.5…
A: Solution:- Calculation of the projected benefit obligation at December 31 as follows:- Basic…
Q: At the end of the current period, Oxford Ltd. has a defined benefit obligation of $195,000 and…
A: Compute the amount related to its pension plan will be reported on the company's statement of…
Q: Scott Hobson Enterprises has a defined benefit pension plan. At the end of the reporting year, the…
A: Pension expense = Service cost + Interest cost + Expected return on plan assets
Q: For Windsor Corporation, year-end plan assets were $1,999,000. At the beginning of the year, plan…
A: Increase in plan assets = Ending plan assets - beginning plan assets =$1,999,000-1,773,000 =…
Q: Pension data for Goldman Company included the following for the current calendar year: Service cost…
A: Solution:- calculation of Pension expense for the year as follows:- Basic information:- Expected…
Q: The Warren Group’s pension expense is $67 million. This amount includes a $70 million service cost,…
A: Calculation of pension liability:( Amounts in millions )
Q: he Corporation has developed the following information (photo attached) for the company's defined…
A: Pension expense- It is the expense business charges for liabilities which is paid to employees. It…
Q: The Pension Expense in a pension plan for the year were recorded at $856,800. In addition, an amount…
A: Under ASPE, The amount of pension expense that company will record is the pension expense which…
Q: Strum Corp. has maintained a defined benefit pension plan for its employees for a number of years.…
A: Pension Expense will be equal to Current Service Costs plus Interest on the projected benefit…
Q: In a recent year’s financial statements, Procter & Gamble showed an unfunded pension liability…
A: Pension: Pension is a cash payment given to the employees at the time of their retirement. The…
Q: Boey Company reported net income of $25,000 in 2021. It had the following amounts related to its…
A: Pension: A fixed sum of money, receivable in future or after the age of retirement, which the…
Q: For Stubby Corporation, year-end plan assets were P2, 000,000. At the beginning of the year, plan…
A: Actual return on plan assets = Ending balance of plan assets - Beginning balance of plan assets +…
Q: the warren groups pension expense is 78 million. the amount includes a 46 million service cost, a 60…
A:
Q: JDS Foods’ projected benefit obligation, accumulated benefit obligation, and plan assets were $40…
A: Calculation of pension liability: Particulars Amount Projected benefit obligation $40 million…
Q: At the end of the current period, Oxford Ltd. has a defined benefit obligation of $195,000 and…
A: Pension plan: This is the plan devised by corporations to pay the employees an income after their…
Q: PQR Company provided the following information for the current year: · Projected Benefit…
A: The current service cost is the employee expenses incurred for the current year. Computation of…
Q: On January 1 of the current reporting year, Coda Company's projected benefit obligation was $29.3…
A: Interest cost = Projected benefit obligation x actuary's discount rate = $29.3 x 10% = $2.93
Q: Presented below is information related to the pension plan of Ivanhoe Inc. for the year 2021. 1.…
A: Given the following information: Service cost related to pension expense: $233,000 Projected…
Q: The following information relates to the defined-benefit pension plan for the employees of a…
A: We are provided with a year data (Opening and closing values) of the fair value of an asset,…
Q: JDS Shipyard's projected benefit obligation, accumulated benefit obligation, and plan assets were…
A: a.
Q: At the end of the current year, Joshua Co. has a defined benefit obligation of $335,000 and pension…
A: Joshua Co. would report a pension asset of $10,000 ($345,000 – $335,000).
Q: At January 1, 2020, Hennein Company had plan assets of $280,000 and a projected benefit obligation…
A: Interest cost: Interest Cost = Projected benefit Obligation × Settlement Discount Rate Service Cost:…
Q: At the end of the current year, Kennedy Co. has a defined benefit obligation of $335,000 and pension…
A: Difference between defined benefit obligation and fair value of plan assets is reported on balance…
Q: On January 1, 20X1, Cello Co. established a defined benefit pension plan for its estimated the…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Pinecone Company has plan assets of 500,000 at the beginning of the current year and expects to earn 12% on its plan assets during the year. Pinecones service cost is 230,000, and its interest cost is 55,000. Compute Pine-cones pension expense for the current year.Given the following information for Tyler Companys pension plan at the beginning of the year, calculate the corridor, excess net loss (gain), and amortized net loss (gain). Assume an average remaining service life of 15 years.Assume that at the beginning of the current year, a company has a net gain-AOCI of $25,600,000. At the same time, assume the PBO and the plan assets are $222,400,000 and $153,500,000, respectively. The average remaining service period for the employees expected to receive benefits is 10 years. What is the amount of amortization to pension expense for the year? $1,968,000. $344,000. $336,000. $689,000.
- Brooks Co. had pension plan assets and PBO of $150,000 on 1/1/24. Service cost for the year was $30,000. It contributed $28,000 during the year and paid benefits of $20,000. The interest rate was 10%. The actual return was $14,000. Compute pension expense. Show computations'At the end of the current period, Agler Inc. had a projected benefit obligation of $400,000 and pension plan assets (at fair value) of $350,000. What are the accounts and amounts that will be reported on the company's balance sheet as pension assets or pension liabilities?Under the defined-benefit pension plan for a company, the expected return on plan assets is $124,000 and actual return on plan assets is $269,000 in 2021. To record the unexpected gain/loss due to asset returns, the company will (enter 1, 2, 3, or 4 that represents the correct answer): Debit Other Comprehensive Income-Gain/Loss Credit Pension Expense Debit Pension Expense Debit Plan Assets
- Goldman Company has a defined benefit pension plan. The following pension-related data were available for the current calendar year: PBO: Balance, Jan. 1 $ 230,000 Service cost 31,000 Interest cost (5% discount rate) 11,500 Gain from changes in actuarial assumptions in 2021 (4,000 ) Benefits paid to retirees (10,000 ) Balance, Dec. 31 $ 258,500 Plan assets: Balance, Jan.1 $ 240,000 Actual return (expected return was $21,500) 20,000 Contributions 25,000 Benefits paid (10,000 ) Balance, Dec. 31 $ 275,000 ABO, Dec. 31 $ 234,000 January 1, 2021, balances: Prior service cost–AOCI (amortization $5,400/yr.) 5,400 Net gain–AOCI (amortization, if any, over 15 years) 54,000 There were no other relevant data.Required:1. Calculate the 2021 pension expense.2. Prepare the 2021 journal entries to record pension expense and funding.3. Prepare any journal entries to record any 2021 gains or losses.At the beginning of current year, Maximus Company hada projected benefit obligation of P10,000,000 and a pension The entity provided the following information related to the Problem 18-20 (IAA) fund with a fair value of P9,200,000. pension plan during the current year: Current service cost Actual return on the pension fund Benefits paid to retirees Contribution to the pension fund Discount rate Expected return on pension fund 1,200,000 250,000 1,100,000 1,050,000 10% 1. What is the pension expense for the current year? a. 1,272,000 b. 2,100,000 c. 1,850,000 d. 1,050,000 2. What is the remeasurement gain or loss for the current year? a. 578,000 gain b. 578,000 loss c. 250,000 gain d. 250,000 loss 3. What is the pension asset or liability at year-end? a. 1,600,000 liability b. 1,600,000 asset 800,000 liability d. c. 800,000 assetHarrison Forklift's pension expense Includes a service cost of $23 million. Harrison began the year with a pension liability of $43 million (underfunded pension plan). 1. Interest cost, $11; expected return on assets, $17; amortization of net loss, $5. 2. Interest cost, $19; expected return on assets, $14; amortization of net gain, $5. 3. Interest cost, $19; expected return on assets, $14; amortization of net loss, $5; amortization of prior service cost, $6 million. Required: Prepare the appropriate general Journal entries to record Harrison's pension expense in each of the above Independent situations regarding the other (non-service cost) components of pension expense ($ in millions): (If no entry is required for a transaction/event, select "No journal entry required" In the first account field. Enter your answers in millions (l.e., 10,000,000 should be entered as 10).) View transaction list Journal entry worksheet < 2 3 1 Prepare the appropriate journal entry to record pension…
- Harrison Forklift's pension expense includes a service cost of $12 million. Harrison began the year with a pension liability of $32 million (underfunded pension plan). 1. Interest cost, $8; expected return on assets, $6; amortization of net loss, $2. 2. Interest cost, $8; expected return on assets, $6; amortization of net gain, $2. 3. Interest cost, $8; expected return on assets, $6; amortization of net loss, $2; amortization of prior service cost, $3 million. Required: Prepare the appropriate general journal entries to record Harrison's pension expense in each of the above independent situations regarding the other (non-service cost) components of pension expense ($ in millions): (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions. (i.e., 10,000,000 should be entered as 10).) Journal entry worksheet 1. Prepare the appropriate journal entry to record pension expense in situation 1 above. 2.…JDS Foods’ projected benefit obligation, accumulated benefit obligation, and plan assets were $40 million, $30 million, and $25 million, respectively, at the end of the year. What, if any, pension liability must be reported in the balance sheet? What would JDS report if the plan assets were $45 million instead?Harrison Forklift's pension expense includes a service cost of $27 million. Harrison began the year with a pension liability of $47 million (underfunded pension plan). Interest cost, $8; expected return on assets, $21; amortization of net loss, $6. Interest cost, $23; expected return on assets, $17; amortization of net gain, $6. Interest cost, $23; expected return on assets, $17; amortization of net loss, $6; amortization of prior service cost, $7 million. Required:Prepare the appropriate general journal entries to record Harrison’s pension expense in each of the above independent situations regarding the other (non-service cost) components of pension expense ($ in millions): (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)