Data for 2010 were as follows: Data for 2010 were as follows:PBO, Jan 1, $241,000 and Dec 31, $279,000; pensionplan assets (fair value) Jan 1, $184,000, and Dec 31,$237,000.The projected benefit obligation was underfunded atthe end of 2010 by?a. $57,000b. $ 38,000c. $ 53,000d. $ 42,000

Step 1: Define Projected Benefit Obligation (PBO)Projected benefit obligation (PBO) is the balance…

Answered: Data for 2010 were as follows: PBO, Jan…

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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Calculate the amount that J&J's retirement fund obligations are underfunded as of each year-end. How much of the underfunding is reported on the company's balance sheet? Analyzing Retirement Fund Obligations. The following information is taken from the 2018 annual report of Johnson & Johnson (J&J): ($ millions) 2018 2017 $31,670 26,818 (4,852) $33,221 Projected benefit obligation Plan assets at fair value .... Net amount recognized in the company's balance sheet (as a liability). 28,404 (4,817)
Assume that actual returns and expected returns to plan assets in a defined benefit pension plan are +$10 and +$12, respectively. What is the effect in the current period on pension expense? Select One: a.Pension expense is increased by $10 b.Pension expense is reduced by $10 c.Pension expense is reduced by $12 d.None of the listed answers
An entity provided the following items related to its defined benefit plan for 2019: January 1 December 31 Projected benefit obligation 3,000,000 3,355,000 Fair value of plan assets 2,260,000 1,600,000 The current service cost for the year was P155,000, contributions to the fund amounted to P500,000 and the actual return and interest income on the plan asset was P160,000, No benefits were paid, There was a decrease in the projected benefit obligation during the year due to change in actuarial assumptions What is the benefit expense for 2019?
An entity provided the following items related to its defined benefit plan for 2019: January 1 December 31 Projected benefit obligation 3,000,000 3,355,000 Fair value of plan assets 2, 260,000 1,600,000 The current service cost for the year was P155,000, contributions to the fund amounted to P500,000 and the actual return and interest income on the plan asset was P160,000, No benefits were paid, There was a decrease in the projected benefit obligation during the year due to change in actuarial assumptions What amount was recognized as actuarial gain on PBO during the year?
Pension data for Barry Financial Services Incorporated include the following: Discount rate, 7% Expected return on plan assets, 13% Actual return on plan assets, 12% Service cost, 2024 January 1, 2024: Projected benefit obligation Accumulated benefit obligation Plan assets (fair value) Prior service cost- AOCI (2024 amortization, $25) Net gain- AOCI (2024 amortization, $12) There were no changes in actuarial assumptions. ($ in thousands) $ 490 3,200 2,900 3,300 415 510 December 31, 2024: Cash contributions to pension fund, December 31, 2024 Benefit payments to retirees, December 31, 2024 Required: 1. Determine pension expense for 2024. 425 450 2. Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for 2024.
The following information relates to Oriole, Incorporated: Plan assets (at fair value) Pension expense Projected benefit obligation Annual contribution to plan Accumulated OCI (PSC) For the Year Ended December 31, ○ $0. O $540000. O $2460000. O $174000. 2025 $1608000 765000 1980000 810000 630000 2026 $2286000 594000 2460000 594000 540000 The amount reported as the liability for pensions on the December 31, 2026 balance sheet is
Pension data for Barry Financial Services Incorporated include the following: Discount rate, 7% Expected return on plan assets, 12% Actual return on plan assets, 11% Service cost, 2024 January 1, 2024: Projected benefit obligation Accumulated benefit obligation Plan assets (fair value) Prior service cost- AOCI (2024 amortization, $50) Net gain- AOCI (2024 amortization, $12) There were no changes in actuarial assumptions. Complete this question by entering your answers in the tabs below. Required 1 Required 2 December 31, 2024: Cash contributions to pension fund, December 31, 2024 Benefit payments to retirees, December 31, 2024 Required: 1. Determine pension expense for 2024. 2. Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for 2024. Pension expense ($ in thousands) $ $ 480 0.0 3,150 2,850 3,250 410 500 Determine pension expense for 2024. Note: Amounts to be deducted should be indicated with a minus sign.…
Sandhill Co. had the following selected balances at December 31, 2021: Projected benefit obligation $4,640,000 Accumulated benefit obligation 4,540,000 Fair value of plan assets 4,285,000 Accumulated OCI (PSC) 165,000 Calculate the pension asset/liability to be recorded at December 31, 2021. Pension $
The following information relates to the defined benefit pension plan of Nelson, Inc. Projected benefit obligation Fair value of plan assets Accumulated OCI-net actuarial gain Settlement rate (for year) Expected rate of return (for year) The interest cost for 2020 is $158,640 $211,520 12/31/19 2,644,000 3,118,000 432,000 O $240,120 O $280,140 O None of the above 6% 8% 12/31/20 4,002,000 3,328,000 480,000 For 2020, Nelson estimates that the average remaining service life of its current employees is 8 years. Nelson's contribution to the plan was $364,000 in 2020 and benefits paid to retirees were $276,000, 6% 7%
How much is the balance of the defined benefit obligation at December 31,2020? How much is the surplus or deficit related to retirement benefits that will be shown on December 31,2020 statement of financial position? How much is the defined benefit cost taken to other comprehensive income for the year 2020?
AU.S. company uses the expected return on plan assets to calculate the net periodic pension cost for its only pension plan. In Year 1, the plan's actual return was 5 percent versus an expected return of 7 percent This diferential will cause an increase to all of the following except the: O Funded status. O Fair value of plan assets. O Net periodic pension cost. O Projected benefit obligation.
At the beginning of current year, Maximus Company hada projected benefit obligation of P10,000,000 and a pension The entity provided the following information related to the Problem 18-20 (IAA) fund with a fair value of P9,200,000. pension plan during the current year: Current service cost Actual return on the pension fund Benefits paid to retirees Contribution to the pension fund Discount rate Expected return on pension fund 1,200,000 250,000 1,100,000 1,050,000 10% 1. What is the pension expense for the current year? a. 1,272,000 b. 2,100,000 c. 1,850,000 d. 1,050,000 2. What is the remeasurement gain or loss for the current year? a. 578,000 gain b. 578,000 loss c. 250,000 gain d. 250,000 loss 3. What is the pension asset or liability at year-end? a. 1,600,000 liability b. 1,600,000 asset 800,000 liability d. c. 800,000 asset

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Data for 2010 were as follows: PBO, Jan 1, $241,000 and Dec 31, $279,000; pension plan assets (fair value) Jan 1, $184,000, and Dec 31, $237,000. The projected benefit obligation was underfunded at the end of 2010 by? a. $57,000 b. $ 38,000 c. $ 53,000 d. $ 42,000