Cullumber Corporation provides the following information about its defined benefit pension plan (in hundreds of thousands of dollars) for 2023: Actual return on plan assets Contributions from employer Benefits paid to retirees Actuarial loss due to change in actuarial assumptions 20 $9 Defined benefit expense Remeasurement gain or loss (OCI) Effect on company's shareholders' equity 21 10 Current service cost Opening balance, DBO Opening balance, plan assets 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.) $23 100 100

Cullumber Corporation provides the following information about its defined benefit pension plan (in hundreds of thousands of dollars) for 2023: Actual return on plan assets Contributions from employer Benefits paid to retirees Actuarial loss due to change in actuarial assumptions 20 $9 Defined benefit expense Remeasurement gain or loss (OCI) Effect on company's shareholders' equity 21 10 Current service cost Opening balance, DBO Opening balance, plan assets 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.) $23 100 100

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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A company has a noncontributory, defined benefit pension plan. At December 31 of the current year, the company received the following information: Projected Benefit Obligation ($ in millions) Balance, January 1 $ 130 Service cost 23 Interest cost 13 Benefits paid (12) Balance, December 31 $ 154 Plan Assets Balance, January 1 $ 70 Actual return on plan assets 9 Contributions current year 23 Benefits paid (12) Balance, December 31 $ 90 The expected long-term rate of return on plan assets was 10%. There was no prior service cost and a negligible net loss—AOCI on January 1 of the current year. Required: Determine the company’s pension expense for the current year. Prepare the journal entries to record the company’s (a) pension expense, (b) funding, and (c) payment for the current year. Please don't give answer & formulae in image based format.. thanku
Information regarding the defined benefit pension plan of Neo Products included the following for 2024 ($ in millions):Plan assets, January 1$ 210Plan assets, December 31315 Return on plan assets30Employer contributions to the pension plan (end of year)126What amount of retiree benefits was paid at the end of 2024? Multiple Choice$51 million$21 million$72 million$105 million
Presented below is pension information related to Fauci, Inc. for the year 2021:Service cost $480,000Interest on projected benefit obligation 200,000Interest on vested benefits 120,000Amortization of prior service cost due to increase in benefits 60,000Expected return on plan assets 90,000The amount of pension expense to be reported for 2021 isa. $590,000.b. $770,000.c. $860,000.d. $650,000.
Pension data for Coda Corporation included the following for the current calendar year: Service cost PBO, January 1 Plan assets, January 1 Amortization of prior service cost $126,000 720,000 770,000 5,700 1,700 Amortization of net loss Discount rate, 10% Expected return on plan assets, 12% Actual return on plan assets, 14% Required: Determine pension expense for the year. (Amounts to be deducted should be indicated with a minus sign.) Pension Expense Pension expense
Electronic Distribution has a defined benefit pension plan. Characteristics of the plan during 2024 are as follows: ($ millions) $470 300 PBO balance, January 1 Plan assets balance, January 1 Service cost Interest cost Gain from change in actuarial assumption Benefits paid Actual return on plan assets Contributions 2024 The expected long-term rate of return on plan assets was 6%. There were no AOCI balances related to pensions on January 1, 2024, but at the end of 2024, the company amended the pension formula, creating a prior service cost of $12 million. Required: 1. Calculate the pension expense for 2024. 2. Prepare the journal entries to record (a) pension expense, (b) gains or losses, (c) prior service cost, (d) funding, and (e) payment of benefits for 2024. 3. What amount will Electronic Distribution report in its 2024 balance sheet as a net pension asset or net pension liability? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3…
The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2024 and 2025 are presented below ($ 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…
Citroen Company provides the following information about its defined benefit pension plan for the year 2021. Service cost $79,000 Contribution to the plan 92,000 Prior service cost amortization 9,500 Actual and expected return on plan assets 61,000 Benefits paid 50,000 Plan assets at January 1, 2021 720,000 Projected benefit obligation on January 1, 2021 770,000 Accumulated OCI (PSC) on January 1, 2021 120,000 Interest/discount (settlement) rate 9% Prepare a pension worksheet. Prepare the journal entry recording pension expense.
What is the net periodic pension cost for the year?
Company A has a pension plan. On December 31, 2021, the following pension related data were available: Projected Benefit Obligation, beginning $860 Plan Assets, beginning 850 Prior service cost - AOCI (amortization $4 per year) 12 Net gain AOCI (any amortization over 8 years) 110 Service cost 112 Interest cost, discount rate, 5% 43 Actual return on plan assets 55 Expected return on plan assets 45 Cash contributions 117 Pension benefits paid 44 What is Pension Expense? $114 O $101 $111 $100