6. On January 1, 2002, Crowther Co.'s estimated a present valye of defined benefit obligation of P440,000 based on a settlement rate of 12 percent. Pension benefits paid to retirees totaled P60,000. Service costs for 2002 amounted to P148,000. The fair values of the plan assets were P350,000 and P400,000 on December 31, 2001, and December 31, 2002, respectively. The projected benefit obligation at December 31, 2002, was

6. On January 1, 2002, Crowther Co.'s estimated a present valye of defined benefit obligation of P440,000 based on a settlement rate of 12 percent. Pension benefits paid to retirees totaled P60,000. Service costs for 2002 amounted to P148,000. The fair values of the plan assets were P350,000 and P400,000 on December 31, 2001, and December 31, 2002, respectively. The projected benefit obligation at December 31, 2002, was

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following information relates to the defined benefit pension plan of Nelson, Inc. Projected benefit obligation Fair value of plan assets Accumulated OCI-net actuarial gain Settlement rate (for year) Expected rate of return (for year) The interest cost for 2020 is $158,640 $211,520 12/31/19 2,644,000 3,118,000 432,000 O $240,120 O $280,140 O None of the above 6% 8% 12/31/20 4,002,000 3,328,000 480,000 For 2020, Nelson estimates that the average remaining service life of its current employees is 8 years. Nelson's contribution to the plan was $364,000 in 2020 and benefits paid to retirees were $276,000, 6% 7%
The Warren Group’s pension cost is $39 million. This amount includes a $68 million service cost, a $36 million interest cost, a $67 million reduction for the expected return on plan assets, and a $2 million amortization of a prior service cost. 1. Choose the components of pension expense that affects the net pension liability: Service costunanswered Amortization of prior service costunanswered Interest costunanswered Expected return on plan assets 2. Prepare the journal entry to record the pension cost.
Smith, Inc. has a pension plan with the following data available for 20X1 and 20X2: 20X1 20X2 Service cost $ 30,000 $ 34,000 Interest cost $ 18,000 $ 20,000 Actual return on plan assets $ 15,000 $ 21,600 Beginning of year plan assets $ 200,000 $ 240,000 Discount rate 8 % 8 % Expected return on plan assets 8 % 8 % The adjustment to OCI for gain or loss from the return on plan assets for 20X2 is: Multiple Choice $0. $2,400 gain. $2,400 loss. unknown from information provided.
On January 1, 2022, Woody Corporation’s projected benefit obligation was $36 million. During 2022, pension benefits paid by the trustee were $8 million. Service cost for 2022 is $16 million. Pension plan assets (at fair value) increased during 2022 by $10 million as expected. At the end of 2022, there were no pension-related other comprehensive income (OCI) accounts. The actuary’s discount rate was 10%. Required:Determine the amount of the projected benefit obligation at December 31, 2022.
Zhender Inc. manufactures hair brushes that sell at wholesale for $2.60 per unit. Budgeted production in both 2018 and 2019 was 4,400 units. There was no beginning inventory in 2018.The following data summarized the 2018 and 2019 operations: 2018 2019 Units sold 3,200 4,600 Units produced 4,400 4,400 Costs: Variable factory overhead per unit $0.55 $0.65 Fixed Factory Overhead $1,980 $1,980 Variable Marketing per unit $0.75 $1.00 Fixed Selling and Administrative $650 $650 Full cost operating income for 2018 is calculated to be: (Do not round immediate calculations. Round final answers to whole dollar amounts)
The Carrasco Company has provided you the following information pertaining to its defined benefit pension plan that was adopted on January 1, 20X1: The service cost was $750,000 during 20X1 and $1,125,000 during 20X2. The contribution to the pension plan was $600,000 on December 31, 20X1 and $1,200,000 on December 31, 20X2. The actuarially determined discount rate and the expected return on plan assets are both 10%. The actual return on plan assets was 10.5%. Retirement benefits pertaining to years of service prior to 20X1 were not granted to the employees. What is the pension expense for the year ended December 31, 20X2? Multiple Choice $1,140,000 $1,065,000 $1,200,000 $1,137,000
JDS Shipyard’s 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?
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.
Richmond Company's defined benefit pension plan had a Projected Benefit Obligation (PBO) of $250,000 on January 1, 2021. During 2021, a) Richmond paid pension benefit: of $30,000, b) the plan's discount rate was 10%; c) the plan's service cost was $95,000; and d) the plan assets increased by $70,000. What is the value of Richmond's PBO at December 31, 2021? Multiple Choice $270,000 O $340,000 O $245,000 O $410,000