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dy's life expecta nsion plan shoul

dy's life expecta nsion plan shoul

FINANCIAL ACCOUNTING
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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On December 31, 20X7, Judy is a fully vested participant in a company-sponsored pension plan. According to the plan's administrator, Judy has at that date the nonforteitable right to receive a lump sum of $100,000 on December 28, 20XR The discounted amount of S100,000 is $90,000 at December 31, 20X2 The right is not contingent on Judy's life expectancy and requires no future performance on her part. In her December 31, 20X7, personal statement of financial condition, the vested interest in the pension plan should be reported at Multiple Choice $100,000 SO. $90.000 $95.000. On December 31, 20X7, Mr, and Mrs. McManus owned a parcel of land held as an investment. They had purchased it for $95,000 in 20xO, and the mortgage on it had a principal balance of $60,000 at December 31, 20X7 On this date the land's fair value was $150,000 In the McManuses' December 31, 20X7, personal statement of financial condition, at what amount should the land investment and mortgage payable be reported? Land Investment Moetgage Payable $150,000 $ 95,000 $ 90,000 $ 35,000 $60,000 $60,000 A. B. C. D. Multiple Choice Opton A Opnon Option C Option D
Transcribed Image Text:On December 31, 20X7, Judy is a fully vested participant in a company-sponsored pension plan. According to the plan's administrator, Judy has at that date the nonforteitable right to receive a lump sum of $100,000 on December 28, 20XR The discounted amount of S100,000 is $90,000 at December 31, 20X2 The right is not contingent on Judy's life expectancy and requires no future performance on her part. In her December 31, 20X7, personal statement of financial condition, the vested interest in the pension plan should be reported at Multiple Choice $100,000 SO. $90.000 $95.000. On December 31, 20X7, Mr, and Mrs. McManus owned a parcel of land held as an investment. They had purchased it for $95,000 in 20xO, and the mortgage on it had a principal balance of $60,000 at December 31, 20X7 On this date the land's fair value was $150,000 In the McManuses' December 31, 20X7, personal statement of financial condition, at what amount should the land investment and mortgage payable be reported? Land Investment Moetgage Payable $150,000 $ 95,000 $ 90,000 $ 35,000 $60,000 $60,000 A. B. C. D. Multiple Choice Opton A Opnon Option C Option D
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