Blossom Inc. has a defined-benefit pension plan covering its 384 employees. Blossom agrees to amend its pensionbenefits. The prior service cost associated with the amendment is $350000. The employees are grouped according toexpected years of retirement, as follows:GroupABсDNumber ofEmployees669613686Expected Retirementon December 31202596 for 2026 and 384 overall.96 for 2026 and 1010 overall.318 for 2026 and 1536 overall.318 for 2026 and 1010 overall.202620272028What is the service years total for the year ending December 31, 2026 and what is the overall total number of serviceyears?

Blossom Inc. has a defined-benefit pension plan covering its 384 employees. Blossom agrees to amend its pension benefits. The prior service cost associated with the amendment is $350000. The employees are grouped according to expected years of retirement, as follows: Group A B C D Number of Employees 66 96 136 86 Expected Retirement on December 31 2025 96 for 2026 and 384 overall. 96 for 2026 and 1010 overall. 318 for 2026 and 1536 overall. 318 for 2026 and 1010 overall. 2026 2027 2028 What is the service years total for the year ending December 31, 2026 and what is the overall total number of service years?

Blossom Inc. has a defined-benefit pension plan covering its 384 employees. Blossom agrees to amend its pension benefits. The prior service cost associated with the amendment is $350000. The employees are grouped according to expected years of retirement, as follows: Group A B C D Number of Employees 66 96 136 86 Expected Retirement on December 31 2025 96 for 2026 and 384 overall. 96 for 2026 and 1010 overall. 318 for 2026 and 1536 overall. 318 for 2026 and 1010 overall. 2026 2027 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

See similar textbooks

Similar questions

Pharoah Acres sponsors a defined-benefit pension plan. The corporation's actuary provides the following information about the plan: January 1, 2025 December 31, 2025 Vested benefit obligation $510 $600 Accumulated benefit obligation 600 830 Projected benefit obligation 840 974 Plan assets (fair value) 590 740 Settlement rate and expected rate of return 10% Pension asset/liability 250 ? Accumulated OCI (PSC) 200 ? Service cost for the year 2025 100 Contributions (funding in 2025) 90 Benefits paid in 2025 50 The average remaining service life per employee is 10 years. (a1) Prepare a 2025 pension worksheet. (Enter all amounts as positive.) Items Balance, Jan. 1, 2025 Service cost Interest cost Return on assets Amortization of PSC Funding Benefits Liability change (increase) Journal entry-2025 Accumulated OCI, Dec. 31, 2024 Balance, Dec. 31, 2025 $ Annual Pension Expense > > > > > > Cash பப
Please help me. Thankyou.
Sheridan Ltd. initiated a one-person pension plan in January 2015 that promises the employee a pension on retirement according to the following formula: pension benefit = 2.6% of final salary per year of service after the plan initiation. The employee began employment with Sheridan early in 2015 at age 33 and expects to retire at the end of 2041, the year in which he turns 60. His life expectancy at that time is 21 years. Assume that this employee earned an annual salary of $49,000 when he joined Sheridan, that his salary was expected to increase at a rate of 4% per year, and that this remains a reasonable assumption to date. Sheridan considers a discount rate of 8% to be appropriate. (a) × Your answer is incorrect. What is the employee's expected final salary? (Round your answer to O decimal places, e.g. 5,275.) Expected final salary $ 108442
Ivanhoe, Inc. has a defined-benefit pension plan covering its 50 employees. Ivanhoe agrees to amend its pension benefits. As a result, the projected benefit obligation increased by $2790000. Ivanhoe determined that all its employees are expected to receive benefits under the plan over the next 5 years. In addition, 10 employees are expected to retire or quit each year. Assuming that Ivanhoe uses the years-of-service method of amortization for prior service cost, the amount reported as amortization of prior service cost in year one after the amendment is $558000. O $651000. $930000. O $186000.
wifty Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2020 in which no benefits were paid. 1. The actuarial present value of future benefits earned by employees for services rendered in 2020 amounted to $55,500. 2. The company’s funding policy requires a contribution to the pension trustee amounting to $144,729 for 2020. 3. As of January 1, 2020, the company had a projected benefit obligation of $908,100, an accumulated benefit obligation of $802,100, and a debit balance of $400,100 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $601,200 at the beginning of the year. The actual and expected return on plan assets was $54,100. The settlement rate was 9%. No gains or losses occurred in 2020 and no benefits were paid. 4. Amortization of prior service cost was $50,500 in 2020. Amortization of net gain or loss was not required in 2020. (a)…
Frazier Refrigeration amended its defined benefit pension plan on December 31, 2018, to increase retirement benefits earned with each service year. The consulting actuary estimated the prior service cost incurred by making theamendment retroactive to prior years to be $110,000. Frazier’s 100 present employees are expected to retire at therate of approximately 10 each year at the end of each of the next 10 years.Required:1. Using the service method, calculate the amount of prior service cost to be amortized to pension expense ineach of the next 10 years.2. Using the straight-line method, calculate the amount of prior service cost to be amortized to pension expensein each of the next 10 years.
arasota Company has five employees participating in its defined benefit pension plan. Expected years of future service for these employees at the beginning of 2020 are as follows. Employee Future Years of Service Jim 3 Paul 4 Nancy 5 Dave 6 Kathy 6 On January 1, 2020, the company amended its pension plan, increasing its projected benefit obligation by $74,880.Compute the amount of prior service cost amortization for the years 2020 through 2025 using the years-of-service method, setting up appropriate schedules. Year Annual Amortization 2020 $enter a dollar amount 2021 enter a dollar amount 2022 enter a dollar amount 2023 enter a dollar amount 2024 enter a dollar amount 2025 enter a dollar amount
The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2024 and 2025 are presented below ($ in millions): Information Provided by Pension Plan Actuary: a. Projected benefit obligation as of December 31, 2023 = $3,350. b. Prior service cost from plan amendment on January 2, 2024 = $650 (straight-line amortization for 10-year average remaining service period). c. Service cost for 2024 = $650. d. Service cost for 2025 = $700. e. Discount rate used by actuary on projected benefit obligation for 2024 and 2025 = 10%. f. Payments to retirees in 2024 $510. g. Payments to retirees in 2025 $580. h. No changes in actuarial assumptions or estimates. 1. Net gain-AOCI on January 1, 2024 = $375. J. Net gains and losses are amortized for 10 years in 2024 and 2025. Information Provided by Pension Fund Trustee: a. Plan asset balance at fair value on January 1, 2024 = $2,400. b. 2024 contributions $670. c. 2025 contributions $720. d. Expected long-term rate…
Sheridan Company has 160 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 1,600. The actuary for the company's pension plan calculated the following net gains and losses: For the Year EndedDecember 31 (Gain) Or Loss 2020 $600,000 2021 (514,000) 2022 950,000 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 $2,060,000 $2,300,000 $2,900,000 Fair value of plan assets 1,640,000 2,420,000 2,510,000 Based on the above information about Sheridan 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…