Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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Question
Chapter 19, Problem 6P
To determine
Prepare a schedule to compute the net gain or loss included in the pension expense of Company K for 2019, 2020 and 2021, and indicate whether the gain or loss is added to or subtracted from the pension expense.
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Students have asked these similar questions
Sandhill Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for
the years 2025 and 2026.
Projected benefit obligation, January 1
Plan assets (fair value and market-related value), January 1
Pension asset/liability, January 1
Prior service cost, January 1
Service cost
Settlement rate
Expected rate of return
Actual return on plan assets
Amortization of prior service cost
Annual contributions
Benefits paid retirees
Increase in projected benefit obligation
due to changes in actuarial assumptions
Accumulated benefit obligation at December 31
Average service life of all employees
Vested benefit obligation at Decem -31
(a1)
2025
Amortization of the loss $
$596,000
411,600
184,400 Cr.
161,400
40,300
10%
10%
35,800
69,500
97,300
31,200
87,100
720,200
Calculate the amortization of the loss (2026) using the corridor approach.
2026
$58,800
10%
10%
61,100
50,500
80,500
53,900
0
792,000
20 years
463,600
Hollenbeck Foods Inc. sponsors a postretirement medical and dental benefit plan for its employees. The following balances relate to this plan on January 1, 2020.
Plan assets
$200,000
Expected postretirement benefit obligation
820,000
Accumulated postretirement benefit obligation
200,000
No prior service costs or OCI balances exist.
As a result of the plan's operation during 2020, the following additional data are provided by the actuary.
Service cost is $70,000
Discount rate is 10%
Contributions to plan are $65,000
Expected return on plan assets is $10,000
Actual return on plan assets is $15,000
Benefits paid to employees are $44,000
Average remaining service to full eligibility: 20 years
Instructions
Using the preceding data, compute the net periodic postretirement benefit cost for 2020 by preparing a worksheet that shows the journal entry for postretirement expense and the year-end balances in the related postretirement benefit memo accounts.…
Sandhill Corp. sponsors a defined benefit pension plan for its
employees. On January 1, 2025, the following balances relate to this
plan.
Plan assets
Projected benefit obligation
Pension asset/lability
Accumulated OCI (PSC)
(a)
As a result of the operation of the plan during 2025, the following
additional data are provided by the actuary.
Service cost
Settlement rate, 9%
Actual return on plan assets
Amortization of prior service cost
Expected returson plan assets
Unexpected loss from change in projected benefit obligation
due to change in actuarial predictions
Contributions
Benentspaid retirees
items
Balance, Jan 1, 2025
Service cost
$496,400
610,800
interest cost
114400
Actual return
98,000 Dr.
Unexpected gain
Using the data above, compute pension expense for Sandhill. for the
year 2025 by preparing a pension worksheet. (Enter all amounts
as positive.)
$90.900
54,700
18.300
51.600
76.600
103.700
85,200
Annual Pension
Expense
C
Cath
SUPPORT
Chapter 19 Solutions
Intermediate Accounting: Reporting And Analysis
Ch. 19 - Prob. 1GICh. 19 - Prob. 2GICh. 19 - Prob. 3GICh. 19 - Prob. 4GICh. 19 - Prob. 5GICh. 19 - Prob. 6GICh. 19 - Prob. 7GICh. 19 - Prob. 8GICh. 19 - Prob. 9GICh. 19 - Prob. 10GI
Ch. 19 - Prob. 11GICh. 19 - Prob. 12GICh. 19 - Prob. 13GICh. 19 - Prob. 14GICh. 19 - Prob. 15GICh. 19 - Prob. 16GICh. 19 - Prob. 17GICh. 19 - Prob. 18GICh. 19 - Prob. 19GICh. 19 - Prob. 20GICh. 19 - Prob. 21GICh. 19 - Prob. 22GICh. 19 - Prob. 23GICh. 19 - The actuarial present value of all the benefits...Ch. 19 - Prob. 2MCCh. 19 - Prob. 3MCCh. 19 - Prob. 4MCCh. 19 - Prob. 5MCCh. 19 - Prob. 6MCCh. 19 - Which of the following is not a component of...Ch. 19 - Prob. 8MCCh. 19 - Prob. 9MCCh. 19 - Prob. 10MCCh. 19 - Prob. 1RECh. 19 - Prob. 2RECh. 19 - Pinecone Company has plan assets of 500,000 at the...Ch. 19 - Prob. 4RECh. 19 - Prob. 5RECh. 19 - Prob. 6RECh. 19 - Prob. 7RECh. 19 - Prob. 8RECh. 19 - Given the following information for Tyler Companys...Ch. 19 - At the beginning of Year 1, Cactus Company has...Ch. 19 - Prob. 11RECh. 19 - Prob. 1ECh. 19 - Prob. 2ECh. 19 - Prob. 3ECh. 19 - Prob. 4ECh. 19 - Prob. 5ECh. 19 - Prob. 6ECh. 19 - Prob. 7ECh. 19 - Prob. 8ECh. 19 - Prob. 9ECh. 19 - Prob. 10ECh. 19 - Prob. 11ECh. 19 - Prob. 12ECh. 19 - Prob. 13ECh. 19 - Refer to the information provided in E19-13....Ch. 19 - Prob. 15ECh. 19 - Prob. 16ECh. 19 - Prob. 1PCh. 19 - Prob. 2PCh. 19 - Prob. 3PCh. 19 - Prob. 4PCh. 19 - Prob. 5PCh. 19 - Prob. 6PCh. 19 - Prob. 7PCh. 19 - Prob. 8PCh. 19 - Prob. 9PCh. 19 - Prob. 10PCh. 19 - Prob. 11PCh. 19 - Prob. 12PCh. 19 - Prob. 1CCh. 19 - Prob. 2CCh. 19 - Prob. 3CCh. 19 - Prob. 4CCh. 19 - Prob. 5CCh. 19 - Prob. 6CCh. 19 - Prob. 7CCh. 19 - Prob. 9C
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