3 10 points eBook Print References U.S. Metallurgical Incorporated reported the following balances in its financial statements and disclosure notes at December 31, 2023. Plan assets Projected benefit obligation $ 450,000 300,000 U.S.M.'s actuary determined that 2024 service cost is $65,000. Both the expected and actual rate of return on plan assets are 8%. The interest (discount) rate is 4%. U.S.M. contributed $125,000 to the pension fund at the end of 2024, and retirees were paid $49,000 from plan assets. Required: 1. What is the pension expense at the end of 2024? 2. What is the projected benefit obligation at the end of 2024? 3. What is the plan assets balance at the end of 2024? 4. What is the net pension asset or net pension liability at the end of 2024? 5. Prepare journal entries to record the (a) pension expense, (b) funding of plan assets, and (c) retiree benefit payments. Complete this question by entering your answers in the tabs below. Req 1 to 4 Req 5 1. What is the pension expense at the end of 2024? 2. What is the projected benefit obligation at the end of 2024? 3. What is the plan assets balance at the end of 2024? 4. What is the net pension asset or net pension liability at the end of 2024? Note: Enter your answers in thousands (i.e., 10,000 should be entered as 10). 1. Pension expense 2. Projected benefit obligation 3 ---- December 31, 2024 Show less A
3 10 points eBook Print References U.S. Metallurgical Incorporated reported the following balances in its financial statements and disclosure notes at December 31, 2023. Plan assets Projected benefit obligation $ 450,000 300,000 U.S.M.'s actuary determined that 2024 service cost is $65,000. Both the expected and actual rate of return on plan assets are 8%. The interest (discount) rate is 4%. U.S.M. contributed $125,000 to the pension fund at the end of 2024, and retirees were paid $49,000 from plan assets. Required: 1. What is the pension expense at the end of 2024? 2. What is the projected benefit obligation at the end of 2024? 3. What is the plan assets balance at the end of 2024? 4. What is the net pension asset or net pension liability at the end of 2024? 5. Prepare journal entries to record the (a) pension expense, (b) funding of plan assets, and (c) retiree benefit payments. Complete this question by entering your answers in the tabs below. Req 1 to 4 Req 5 1. What is the pension expense at the end of 2024? 2. What is the projected benefit obligation at the end of 2024? 3. What is the plan assets balance at the end of 2024? 4. What is the net pension asset or net pension liability at the end of 2024? Note: Enter your answers in thousands (i.e., 10,000 should be entered as 10). 1. Pension expense 2. Projected benefit obligation 3 ---- December 31, 2024 Show less A
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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10
points
eBook
Print
References
U.S. Metallurgical Incorporated reported the following balances in its financial statements and disclosure notes at December 31, 2023.
Plan assets
Projected benefit obligation
$ 450,000
300,000
U.S.M.'s actuary determined that 2024 service cost is $65,000. Both the expected and actual rate of return on plan assets are 8%. The
interest (discount) rate is 4%. U.S.M. contributed $125,000 to the pension fund at the end of 2024, and retirees were paid $49,000
from plan assets.
Required:
1. What is the pension expense at the end of 2024?
2. What is the projected benefit obligation at the end of 2024?
3. What is the plan assets balance at the end of 2024?
4. What is the net pension asset or net pension liability at the end of 2024?
5. Prepare journal entries to record the (a) pension expense, (b) funding of plan assets, and (c) retiree benefit payments.
Complete this question by entering your answers in the tabs below.
Req 1 to 4
Req 5
1. What is the pension expense at the end of 2024?
2. What is the projected benefit obligation at the end of 2024?
3. What is the plan assets balance at the end of 2024?
4. What is the net pension asset or net pension liability at the end of 2024?
Note: Enter your answers in thousands (i.e., 10,000 should be entered as 10).
1. Pension expense
2. Projected benefit obligation
3
----
December 31, 2024
Show less A
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