90. Azalea Inc. has a defined-benefit pension plan covering its 200 employees. Azalea agrees to amend its pension benefits. The prior service cost associated with the amendment is $120,000. The employees are grouped according to expected years of retirement, as follows: Group Number of Employees Expected Retirement on December 31 A 20 2025 В BCD 50 2026 с 90 2027 40 2028 What is the service years total for the year ending December 31, 2026 and what is the overall total number of service years?

90. Azalea Inc. has a defined-benefit pension plan covering its 200 employees. Azalea agrees to amend its pension benefits. The prior service cost associated with the amendment is $120,000. The employees are grouped according to expected years of retirement, as follows: Group Number of Employees Expected Retirement on December 31 A 20 2025 В BCD 50 2026 с 90 2027 40 2028 What is the service years total for the year ending December 31, 2026 and what is the overall total number of service years?

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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Verizon Communications has a defined benefit pension plan with the following information: 2021 2022 Beginning Beginning balances balances ($ in thousands) Projected benefit obligation $ (6,700) $(7,204) Plan assets 6,400 670 7,036 640 Prior service cost-AOCI Net loss-AOCI $ 790 $ 850 At the end of 2021, Verizon contributed $730 thousand of cash to the pension fund. Retirees of the company were paid $664 thousand. The plan asset's expected rate of return was 10%, and the discount rate on the obligations was 8%. There were no changes in actuarial estimates and assumptions regarding the PBO. What is the 2021 pension expense?
Cullumber Corporation provides the following information about its defined benefit pension plan (in hundreds of thousands of dollars) for 2023: $9 21 Actual return on plan assets Contributions from employer Benefits paid to retirees Actuarial loss due to change in actuarial assumptions 20 Defined benefit expense Remeasurement gain or loss (OCI) Effect on company's shareholders' equity 10 Current service cost Opening balance, DBO Opening balance, plan assets $23 100 At the end of the year, Cullumber revised the terms of its pension plan, which resulted in past service costs of $35. Assuming that Cullumber applies an 10% interest cost and follows IFRS, determine the company's 2023 defined benefit expense and the effect of the pension plan on the company's shareholders' equity. (Enter answer in hundreds of thousands of dollars.) $ 100
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Klondike Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2019 and 2020. 2019 2020 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 S600,000 410,000 190,000 Cr. 160,000 40,000 $ 59,000 Settlement rate 10% 10% Expected rate of return Actual return on plan assets 10% 10% 36,000 61,000 Amortization of prior service cost 70,000 50,000 Annual contributions 97,000 81,000 Benefits paid retirees 31,500 54,000 87,000 721,800 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 December 31 -0- 789,000 20 years 464,000 Instructions (a) For both years 2019 and 2020, compute the annual pension expense.
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28. Midland Company follows GAAP for its external financial reporting whereas Bailey Company follows IFRS for its external financial reporting. The remaining service lives of employees at both firms is estimated to be 10 years. The following information is available for each company at December 31, 2021 related to their respective definedbenefit pension plans. Midland Bailey Net of pension assets and liabilities $110,000 $140,000 Prior service cost $230,000 $175,000 What is the amount of prior service cost recognized by each company in its income statement for the year ended December 31, 2021? Midland Bailey $230,000 $175,000 $ 23,000 $175,000 $ 23,000 $ 17,500 $230,000 $ 17,500
30. Midland Company follows GAAP for its external financial reporting whereas Bailey Company follows IFRS for its external financial reporting. The remaining service lives of employees at both firms is estimated to be 10 years. The following information is available for each company at December 31, 2021 related to their respective defined-benefit pension plans. Midland Bailey Net of pension assets and liabilities $110,000 $140,000 Prior service cost (after amortization, if any) $230,000 $175,000 What is the amount of Prior Service Cost recognized by each company on its balance sheet at December 31, 2021? Midland Bailey $230,000 $175,000 $-0- $175,000 $-0- $-0- d. $230,000 $-0
Current Attempt in Progress Sheridan Corporation sponsors a defined benefit pension plan for its 100 employees. On January 1, 2023, the company's actuary provided the following information: Pension plan assets (fair value) Defined benefit obligation $1,020,000 1,410,000 The actuary calculated that the present value of future benefits earned for employee services rendered in 2023 amounted to $214,000, the December 31, 2023 defined benefit obligation was $1,831,200, and the appropriate interest or discount rate was 9%. The plan assets generated a return of $84,600 during 2023. The company funded the 2023 current service cost as well as $106,100 of the past service costs recognized in a previous year; however, no benefits were paid during the year. Sheridan is a private company and applies ASPE. (a) Prepare a schedule that indicates what the plan's surplus or deficit is at December 31, 2023. $
Cullumber Company has 120 employees who are expected to receive benefits under the company's defined-benefit pension plan. The total number of service-years of these employees is 1,200. The actuary for the company's pension plan calculated the following net gains and losses: For the Year EndedDecember 31 (Gain) Or Loss 2020 $560,000 2021 (474,000) 2022 910,000 Prior to 2020, there was no unrecognized net gain or loss.Information about the company's projected benefit obligation and market-related (and fair) value of plan assets follows: As of January 1 2020 2021 2022 Projected benefit obligation $2,020,000 $2,260,000 $2,860,000 Fair value of plan assets 1,600,000 2,380,000 2,470,000 Based on the above information about Cullumber Company, prepare a schedule which reflects the amount of net gain or loss to be amortized by the company as a component of pension expense for the years 2020, 2021, and 2022. The company amortizes…
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