Brown Corp had a projected benefit obligation of $3,000,000 and plan assets of $2,500,000 at January 1, 2021. Brown had a net actuarial loss of $425,000 in Accumulated OCI at January 1, 2021. The average remaining service period of Brown's employees is 8 years. Calculate Brown's minimum amortization of the actuarial loss. $53,125 $18,000 O $15,625 O $37,500

Brown Corp had a projected benefit obligation of $3,000,000 and plan assets of $2,500,000 at January 1, 2021. Brown had a net actuarial loss of $425,000 in Accumulated OCI at January 1, 2021. The average remaining service period of Brown's employees is 8 years. Calculate Brown's minimum amortization of the actuarial loss. $53,125 $18,000 O $15,625 O $37,500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: over the next 8 years according to current employee contracts. The present value of the total…

Q: On February 20, 2022, ABC Construction Company entered into a fixed-price contract to construct a…

A: Calculation of total Amount of Contract Costs charged to Profit and Loss in 2022::: Total Estimated…

Q: Sunland Corporation had a projected benefit obligation of $3,323,000 and plan assets of $3,561,000…

A: Amortization -Amortization is the process of distributing or allocating a long-term liability's or…

Q: California Industries, Inc. borrowed $200,000 at 12% interest on January 1, 2020, for the…

A: Interest expense refers to the cost that is paid on a debt borrowed by an individual or company. The…

Q: Coronado Corporation had a projected benefit obligation of $2,890,000 and plan assets of $3,097,000…

A: Corridor rule says that losses or gains which exceed 10 % of Higher of Pension benefit obligation…

Q: 1. During 2020, Bay Construction started a new construction job with a contract price of $750…

A: The objective of the question is to calculate the gross profit (or loss) for Bay Construction for…

Q: Shin Corporation had a projected benefit obligation of $4,300,000 and plan assets of $4,100,000 at…

A: The company pays pensions to its employees. It's a liability for the company so the company should…

Q: rofit or loss contract m

A: Contract price402000Cost incurred in 2020252000Estimated additional cost to complete162405Total cost…

Q: Splish Construction Company began work on a $ 420,000 construction contract in 2020. During 2020,…

A: Journal entry is a primary entry that records the financial transactions initially.

Q: Novak, Inc. has a fiscal year ending April 30. On May 1, 2020, Novak borrowed $10,728,000 at 11% to…

A: Interest to be capitalized to building since it is a qualifying asset

Q: Buffalo Corporation had a projected benefit obligation of $3,280,000 and plan assets of $3,446,000…

A: Solution:- calculation of the Minimum amortization of the actuarial loss as follows under:-

Q: On January 1, 2021, the Montgomery Company agreed to purchase a building by making six payments. The…

A: Answer: Part 1: PV factor for deferred annuity = PVA factor, n = 6, i = 12% - PVA factor, n = 3, i =…

Q: . Required:Calculate the amount of interest capitalized for 2024 and 2025.

A: An interest capitalized amount is the amount of interest which has been added to the construction…

Q: Klutlan Industries began construction of a warehouse on July 1, 2018. The project was completed on…

A: GIVEN Klutlan Industries began construction of a warchouse on July 1, 2018. The project was…

Q: (Postretirement Benefit Worksheet—2 Years) Elton Co. has the following postretirement benefit plan…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: n January 1, 2021, the Marjlee Company began construction of an office building to orporate…

A: When a corporation has a diversified portfolio of financial instruments with variable interest rates…

Q: Grouper, Inc. has a fiscal year ending April 30. On May 1, 2020, Grouper borrowed $9,912,000 at 11%…

Question

Brown Corp had a projected benefit obligation of $3,000,000 and plan assets of $2,500,000 at
January 1, 2021. Brown had a net actuarial loss of $425,000 in Accumulated OCI at January 1,
2021. The average remaining service period of Brown's employees is 8 years. Calculate Brown's
minimum amortization of the actuarial loss.
$53,125
$18,000
$15,625
$37,500
Fly

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Explain employee benefits

VIEW

Step 2: Determine the minimum amortization of the actuarial loss:

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

At the beginning of 2021, VHF Industries acquired a machine with a fair value of $6,774,420 by issuing a four-year, noninterest-bearing note in the face amount of $8 million. The note is payable four annual installments of $2 million at the end of each year. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. What is the effective rate of interest implicit in the agreement? 2. to 4. Prepare the necessary journal entries. When recording the issuance of the installment note record it at its net book value in a single note payable (or receivable) account (no Discount). 5. Suppose the market value of the machine was unknown at the time of purchase, but the market rate of interest for notes of similar risk was 12%. Prepare the journal entry to record the purchase of the machine. Complete this question by entering your answers in the tabs below. Required 1 Required 2 to 4 Interest rate What is the effective…
Excelsior Corporation has the following headings on its December 31, 2019 Balance Sheet:Total Current Assets $200,000Total Assets $500,000Total Current Liabilities $156,500Total Non Current Liabilities $300,000On January 2020 Excelsior sells temporary investments to pay off $48,900 in long term debt Required 1: How much will working capital increase (decrease) by when comparing December 2019 with January 2020? $ Required 2: If no other transaction took place in January 2020, the current ratio at the end of January 2020 is: Required 3: If no other transaction took place in January 2020, the debt to equity ratio at the end of January 2020 is: Required 4: If no other transaction took place in January 2020, the financial leverage in January 2020 is (calculate the Equity Ratio and not the Equity Ratio percentage): Required 5: If last 12 month sales as of January 2020 amount to $480,000, the working capital turnover for the period ended January 31st 2020 is:
U.S. Metallurgical Inc. reported the following balances in its financial statements and disclosure notes at December 31, 2020. Plan assets $ 400,000 Projected benefit obligation 320,000 U.S.M.'s actuary determined that 2021 service cost is $60,000. Both the expected and actual rate of return on plan assets are 9%. The interest (discount) rate is 5%. U.S.M. contributed $120,000 to the pension fund at the end of 2021, and retirees were paid $44,000 from plan assets. (Enter your answers in thousands (i.e., 10,000 should be entered as 10).) Required: What is the pension expense at the end of 2021? What is the projected benefit obligation at the end of 2021? What is the plan assets balance at the end of 2021? What is the net pension asset or net pension liability at the end of 2021? Prepare journal entries to record the (a) pension expense, (b) funding of plan assets, and (c) retiree benefit payments.
On January 1, 2020, Bacarra Company leased an asset for a term of six years. Annual rentals of P500,000 is payable every yearend. The cost of the leased asset is P2,100,000. Initial direct costs paid by Bacarra totaled P6,360. The asset will revert to Bacarra at the end of the lease term, when its residual value would amount to P100,000. Assume it is a direct finance lease with an implicit rate of 12% and the residual value is guaranteed, how much is the interest income for 2020?
In 2020, Grouper Construction Corp. began construction work under a 3-year contract. The contract price was $1,060,000. Grouper uses the percentage-of-completion method for financial accounting purposes. The income to be recognized each year is based on the proportion of cost incurred to total estimated costs for completing the contract. The financial statement presentations relating to this contract at December 31, 2020, are shown below. Balance Sheet Accounts receivable $17,700 Construction in process $68,300 Less: Billings 61,300 Costs and recognized profit in excess of billings 7,000 Income Statement Income (before tax) on the contract recognized in 2020 $16,392 (a) How much cash was collected in 2020 on this contract? Portion of contract billings collected $enter a dollar amount (b) What was the initial estimated total income before tax on this contract? Income before tax on this contract $enter a…
Pearl, Inc. has a fiscal year ending April 30. On May 1, 2020, Pearl borrowed $9,636,000 at 11% to finance construction of its own building. Repayments of the loan are to commence the month following completion of the building. During the year ended April 30, 2021, weighted- average accumulated expenditures were $3,372,600. Interest earned on the unexpended portion of the loan amounted to $626,340 for the year. How much should be shown as capitalized interest on Pearl's financial statements at April 30, 2021? Capitalized interest on Pearl's financial statements 2$
Jen Company had a 10% P1,000,000 specific construction loan and 12% P20,000,000 general loan outstanding during 2021. The entity began the self-construction of a building on January 1, 2021 and was completed on December 31, 2021. The following expenditures were made during 2021: January 1, 2021 1,000,000April 1, 2021 2,000,000December 1, 2021 3,000,0001) What is the cost of the building on December 31, 2021?
Nichols Fruits leased farm equipment from King Machinery on January 1, 2024. The present value of the lease payments discounted at 10% was $40 million. Ten annual lease payments of $6 million are due at the beginning of each year beginning January 1, 2024. King had constructed the equipment recently for $33 million. The total decrease in earnings (pretax) in Nichols'2024 income statement would be: