Balanga, Inc. contributed P500,000 for its pension fund inclusive of P200,000 funding of current service cost. How much is the deductible pension expense?
Q: During the current year, Vander Esch Industries contributed $150,000 to its defined benefit pension…
A: Defined benefit pension plans are plans that are made for payment of retirement benefits to the…
Q: Answer is complete but not entirely correct. $ Retiree benefits 41 million
A: The income and assistance offered to retired employees from their work are called retiree benefits.…
Q: The PBO was $100 million at the beginning of the year and $108 million at the end of the year.…
A: Formula: Ending PBO = Beginning PBO + Interest on beginning PBO + Service cost - benefits paid
Q: For the current year, a company with a DB pension plan has service cost $106,000; benefits paid…
A: Defined benefit pension plans are the retirement designs that include providing a fixed and…
Q: At the end of the current year, Top Co. has a defined benefit obligation of £335,000 and pension…
A: Pension Fund The purpose of creating the pension fund is to some of the small portion of amount…
Q: The following information pertains to Havana Corporation's defined benefit pension plan: ($ in…
A: Service costs = Ending PBO - Interest costs + benefit paid to retirees - Beginning PBO where,…
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: es Harrison Forklift's pension expense includes a service cost of $10 million. Harrison began the…
A: PBO can be used to explain the present value of all pension benefits obtained by employees on the…
Q: A government makes a contribution to its pension plan in the amount of $10,000 for year 1. The…
A: Under a pension plan employer commits to make regular contributions to a pool of money as a part of…
Q: The projected benefit obligation was $340 million at the beg the year, pension benefits paid by the…
A: Service cost Service Costs are the Consultant's predetermined monthly costs for the performance of…
Q: ($ in millions) debit (Credit) Beginning balance Service cost Interest cost Expected return on…
A: Prior service cost at the beginning of the year = Prior service cost at the end of the year +…
Q: The projected benefit obligation was $240 million at the beginning of the year. Service cost for the…
A: End of the year PBO$256millionExplanation:Beginning PBOAt the start of the year, the projected…
Q: The PBO was $100 million at the beginning of the year and $108 million at the end of the year.…
A: Formula: Ending PBO = Beginning PBO + Interest on Beginning PBO + Service cost - Benefits paid
Q: The projected benefit obligation was $260 million at the beginning of the year and $278 million at…
A: Closing obligation is calculated using the following formula:
Q: The following information relates to Jackson, Inc.: For the Year Ended December 31, $30,000. O…
A: Liability is the obligation which is to paid off by the entity at a future date. It is to be shown…
Q: Plan assets at fair value, January 1 630 Expected return on plan assets 63 Actual return on plan…
A: Formula: Beginning plan Assets + Actual return on plan assets + Contributions to the pension fund -…
Q: Harrison Forklift's pension expense includes a service cost of $28 million. Harrison began the year…
A: With the use of projected future pay, PBO may be used to determine the present value of all PB…
Q: Harrison Forklift's pension expense includes a service cost of $27 million. Harrison began the year…
A: Introduction:- Journal entries used to record business transactions. which plays vital role in book…
Q: Silverado maintains a fully funded pension plan. During2011, $1 million was paid to retired workers,…
A: Pension fund: It can be defined as an investment pool that is used to pay for the worker’s…
Q: The following information pertains to Sowell Corporation's defined benefit pension plan: 2022…
A: The pension under the defined benefit plan is guaranteed. The defined opinion plan is majorly funded…
Q: Q3: The defined benefit obligation was $80 million at the beginning of the year and $85 million at…
A: To determine the amount of retiree benefits paid by the trustee, we need to calculate the change in…
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: Harrison Forklift's pension expense includes a service cost of $23 million. Harrison began the year…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Manno Corporation has the following information available concerning its defined-benefit pension…
A: Pension benefits are an important component of retirement planning, as they provide a reliable…
Q: Daisy Laboratories has a defined benefit retirement plan. The company's annual financial statements…
A: To determine the company's pension-related cash flow for the year, examine the different components…
Q: Calculate the amount that J&J’s retirement fund obligations are underfunded as of each year-end. How…
A: Asset retirement obligation (ARO) is an obligation that arises on the acquisition of some specific…
Q: La, Inc. sponsors a defined-benefit pension plan. The following data relates to the operation of the…
A: Computation of the amount of pension expenses reported for 2016 is as follows:
Q: The projected benefit obligation was $480 million at the beginning of the year. Service cost for the…
A: The Projected Benefit Obligation (PBO) is an accounting term used in the context of employee pension…
Q: Phillip Company has a defined benefit pension plan. At the end of the reporting year, the following…
A: Project benefit obligation refers to the measurement of the value in the present for meeting the…
Q: The projected benefit obligation was $80 million at the beginning of the year and $85 million at the…
A: Service cost: Service cost meanse the present value of retirement benefit earned by the employees…
Q: Starfish, Inc. discloses the following pension footnote in its 2020 10-K report (in millions): U.S.…
A: Concept used: Calculate funded status of the plan by deducting the fair value of US pension asset…
Q: i need the answer quickly
A: “Since you have posted multiple questions, we will provide the solution only to the first question…
Q: For 2020, Carson Majors Inc. had pension expense of $77 million and contributed $55 million to the…
A: In the given situation, total pension expenses are $77 million and amount contributed to the pension…
Q: Li Co. is a publicly traded entity that sponsors both a pension plan and a postretirement plan…
A: Post retirement benefit cost = Service cost +interest cost on benefit obligation +ammortisation of…
Q: Lesser Company should amortize an amount of the unrecognized gain equal to
A: To calculate the amount of unrecognized gain that Lesser Company should amortize, we first need to…
Q: Harrison Forklift's pension expense includes a service cost of $27 million. Harrison began the year…
A: PBO is used to describe the present value of all pension benefits earned by employees based on their…
Q: The projected benefit obligation was $80 million at the beginning of the year. Service cost for the…
A: Service cost: Service cost meanse the present value of retirement benefit earned by the employees…
Q: The following information pertains to Havana Corporation's defined benefit pension plan: ($ in…
A: The process of determining the expenses connected with developing, sustaining, and providing your…
Q: A government makes a contribution to its pension plan in the amount of $10,000 for year 1. The…
A: Under a pension plan employer commits to make regular contributions to a pool of money as a part of…
Q: Harrison Forklift's pension expense includes a service cost of $14 million. Harrison began the year…
A: PBO is used to describe the present value of all pension benefits earned by employees based on their…
Q: Bonny Corp. has a defined benefit pension plan for its employees who have an average remaining…
A: Projected benefit obligation is the future benefits' present value that is to be paid to the…
Q: FS LTD. has a defined benefit pension plan. As at 31 December 2018, its plan assets had a book value…
A: As per IAS 19, Plan assets are always shown at fair value (cost is irrelevant). Therefore, plan…
Q: For Sheridan Corporation, year-end plan assets were $1,967,000. At the beginning of the year, plan…
A: To compute Sheridan Corporation's actual return on plan assets, we need to consider the change in…
Q: Armando Hernandez Fashions, Inc. sponsors a defined-benefit pension plan for its employees. The…
A: Calculation of Ending Balance of PBO Particulars Amount ($) Opening Balance of PBO 678,000…
Balanga, Inc. contributed P500,000 for its pension fund inclusive of P200,000 funding of current service cost. How much is the deductible pension expense?
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- the warren groups pension expense is 78 million. the amount includes a 46 million service cost, a 60 million interest cost, a 34 million reduction for the expected return on plan assets, and a 6 million amoritization of a prior service cost. prepare the journal entry to record the pension expense?The PBO was $100 million at the beginning of the year. Service cost for the year was $12 million. At the end of the year, pension benefits paid by the trustee were $8 million and there were no pension-related OCI account. The actuary's discount rate was 5%. What was the amount fo the PBO at the end of the year? (Enter your answer in million, round to the nearest million, without dollar sign, ex. 123 or -123).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'
- 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.…Harrison Forklift's pension expense includes a service cost of $24 million. Harrison began the year with a pension liability of $44 million (underfunded pension plan). ($ in millions) 1. Interest cost, $12; expected return on assets, $18; amortization of net loss, $5. 2. Interest cost, $20; expected return on assets, $15; amortization of net gain, $5. 3. Interest cost, $20; expected return on assets, $15; amortization of net loss, $5; amortization of prior service cost, $6. Required: Prepare the appropriate general journal entries to record Harrison's pension expense in each of the following independent situations regarding the other (non-service cost) components of pension expense. Note: 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). View transaction list Journal entry worksheet 1 2 3 Prepare the appropriate journal entry to record pension expense…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.
- The PBO was $100 million at the beginning of the year and $114 million at the end of the year. At the end of the year, pension benefits paid by the trustee were $6 million and there were no pension-related OCI account. The actuary's discount rate was 5%. What was the amount of the service cost for the year? (Enter your answer in million, round to the nearest million, without dollar sign, ex. 123 or -123).A company's defined benefit pension plan incurs current service cost of $4,000,000. his pension plan's assets generated $2,500,000 of income, which exceeded expectations by $500,000. Pension obligations incurred interest cost of $1,500,000, which were $700,000 below expectations. During the year, the company increased benefits in the pension plan and incurred $800,000 for past service cost. What is the pension expense for the year? o A) $3,800,000 • B) $4,600,000 • C) $5,600,000 o D) $5,000,000 O 2. What are actuarial losses or gains in a defined benefit plan? • A) Difference arising between the actual and the expected value of plan contributions. o B) Expected income earned on the pension plan assets. o c) Differences arising between the actual and expected values of the obligation. o D) Plan amendments that retrospectively improve pension plan benefits.The factors affecting pension expense are not always obvious.As the accountant for Sunlight City, you determine the following with respect to the city's pensions in a particular year.Service cost $356,000Interest on total pension liability 400,000Actual earnings on pension plan investments 500,000Projected earnings on pension plan investments 450,000Employer contribution to the plan 180,000Benefits paid to retirees 211,000 Based on the information provided, what should the city report as its pension expense for the year? Suppose that the benefits paid to retirees were actually $251,000 rather than $211,000. How would that affect the pension expense? Explain. Suppose also that the city failed to contribute anything to the pension plan. How would that affect the pension expense to be reported on the government‐wide statements? Explain. How would it affect the pension expenditure to be reported on the statements of the general fund?
- Lahey Corp. has three defined benefit pension plans as follows. Pension Assets (at Fair Value) Projected Benefit Obligation Plan X $600,000 $500,000 Plan Y 900,000 720,000 Plan Z 550,000 700,000 How will Lahey report these multiple plans in its financial statements?The balance sheet below represents the pension plan of Myers IncorporationASSETS: ( in millions)Pension fund 720Future normal costs 600Unarmortized supplemental liabilities 100Losses from changes in actuarial assumptions. 150TOTAL ASSETS: 1660LIABILITIES: (in millions)Vested accrued benefits. 540Unvested accrued benefits. 220Expected future service costs 900EXPECTED BENEFITS: 1660Required:a). Explain the meaning of each of the terms highlighted in the balance sheet aboveb). Calculate:i). Unfunded vested accrued benefitsii). Unfunded accrued benefitsC). Suppose normal costs do not change, show how the balance sheet would change if:i). The value of securities in the pension fund falls by $50 millionii). The union negotiation increased pension worth $80 millionThe 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
![Essentials Of Investments](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781260013924/9781260013924_smallCoverImage.jpg)
![FUNDAMENTALS OF CORPORATE FINANCE](https://www.bartleby.com/isbn_cover_images/9781260013962/9781260013962_smallCoverImage.gif)
![Financial Management: Theory & Practice](https://www.bartleby.com/isbn_cover_images/9781337909730/9781337909730_smallCoverImage.gif)
![Foundations Of Finance](https://www.bartleby.com/isbn_cover_images/9780134897264/9780134897264_smallCoverImage.gif)
![Fundamentals of Financial Management (MindTap Cou…](https://www.bartleby.com/isbn_cover_images/9781337395250/9781337395250_smallCoverImage.gif)
![Corporate Finance (The Mcgraw-hill/Irwin Series i…](https://www.bartleby.com/isbn_cover_images/9780077861759/9780077861759_smallCoverImage.gif)
![Essentials Of Investments](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781260013924/9781260013924_smallCoverImage.jpg)
![FUNDAMENTALS OF CORPORATE FINANCE](https://www.bartleby.com/isbn_cover_images/9781260013962/9781260013962_smallCoverImage.gif)
![Financial Management: Theory & Practice](https://www.bartleby.com/isbn_cover_images/9781337909730/9781337909730_smallCoverImage.gif)
![Foundations Of Finance](https://www.bartleby.com/isbn_cover_images/9780134897264/9780134897264_smallCoverImage.gif)
![Fundamentals of Financial Management (MindTap Cou…](https://www.bartleby.com/isbn_cover_images/9781337395250/9781337395250_smallCoverImage.gif)
![Corporate Finance (The Mcgraw-hill/Irwin Series i…](https://www.bartleby.com/isbn_cover_images/9780077861759/9780077861759_smallCoverImage.gif)