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Q: The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal…
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Q: The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal…
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Q: Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.6% x…
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A: Workings:
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A: Service cost is the cost of services being provided by the employee to the company.
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A: Thank you for your patience. If my answer helps you a little bit. Help me with positive ratings. So…
Q: Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.5% ×…
A: Accumulated benefit obligation (ABO) can be defined as the approximate value of the pension plan…
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A: Number of service years =50+40+30+20+10 = 150
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Q: Company A has established a defined benefit plan indicating a plan formula for annual benefit equal…
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Q: Herring Wholesale Company has a defined benefit pension plan. On January 1, 2021, the following…
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Q: A partially completed pension spreadsheet showing the relationships among the elements that comprise…
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Q: The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal…
A: The objective of the question is to calculate the pension expense for the years 2024 and 2025 for…
Q: Pharoah Inc. has sponsored a noncontributory, defined benefit pension plan for its employees since…
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Q: The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal…
A: The objective of the question is to calculate the pension expense for the years 2024 and 2025, and…
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- 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: Projected benefit obligation as of December 31, 2023 = $1,800. Prior service cost from plan amendment on January 2, 2024 = $400 (straight-line amortization for 10-year average remaining service period). Service cost for 2024 = $520. Service cost for 2025 = $570. Discount rate used by actuary on projected benefit obligation for 2024 and 2025 = 10%. Payments to retirees in 2024 = $380. Payments to retirees in 2025 = $450. No changes in actuarial assumptions or estimates. Net gain—AOCI on January 1, 2024 = $230. Net gains and losses are amortized for 10 years in 2024 and 2025. Information Provided by Pension Fund Trustee: Plan asset balance at fair value on January 1, 2024 = $1,600. 2024 contributions = $540. 2025 contributions = $590. Expected long-term rate of return on plan assets =…Ruby Corporation is required to pay the pension cost of one of its unionized employees. According to the terms of the union contract, the employee will retire in four years and receive $55,000 at the end of the three consecutive years following retirement. Interest is compounded annually. (Click the icon to view the Future Value of $1 table.) (Click the icon to view the Future Value of an Ordinary Annuity table.) (Click the icon to view the Future Value of an Annuity Due table.) (Click the icon to view the Present Value of $1 table.) (Click the icon to view the Present Value of an Ordinary Annuity table.) (Click the icon to view the Present Value of an Annuity Due table.) Requirement Compute the pension obligation that Ruby has incurred today if the discount rate is 10%. (Use the present value and future value tables, the formula method, a financial calculator, or a spreadsheet for your calculations. If using present and future value tables or the formula method, use factor amounts…On December 31, 2019, Palmer Company determined that the 2019 service cost on its defined benefit pension plan was $130,000. At the beginning of 2019, Palmer had pension plan assets of $520,000 and a projected benefit obligation of $700,000. Its discount rate (and expected long-term rate of return on plan assets) for 2019 was 10%. There are no other components of Palmer’s pension expense; the company had an accrued/prepaid pension cost liability at the end of 2018. Required: 1. Compute the amount of Palmer’s pension expense for 2019. 2. Prepare the journal entry to record Palmer’s 2019 pension expense if it funds the pension plan in the amount of (a) $148,000 and (b) $130,000.
- Pendulum Enterprises has a defined benefit plan. Employees receive a pension equal to 2% of the average of the highest 5 years of salary and based on years of service. On December 31 2020, the fair value of the pension assets in the plan is $10.7 M, although pension contributions were in excess of $12.5 M, and the estimated pension obligation is $12.3M. Mary-Lou is considering retirement but wants to know how much she is entitled to receive under this defined benefit plan. Her 5 years highest average earnings are $67,500 and she has 30 years of service. What is her annual pension benefit? (place value without a $ sign in the space below) AA company had the following information concerning the operation of the company's defined-benefit pension plan for the year ended December 31, 2021. January 1, 2021 December 31, 2021Fair value of pension plan assets $38,000 $55,000Projected benefit obligation 74,000 93,000 The service cost component of pension expense for 2021 is $8,700 and the amortization of prior service cost is $890. The settlement rate is 12% and the expected rate of return is 8%. What is the amount of pension expense for 2021?Crane Inc. has a defined - benefit pension plan covering its 216 employees. Crane agrees to amend its pension benefits. The prior service cost associated with the amendment is $140000. The employees are grouped according to expected years of retirement, as follows: Group Number of Employees Expected Retirement on December 31 A 24 2025 B 54 2026 C 94 2027 D 44 2028 What is the service years total for the year ending December 31, 2026 and what is the overall total number of service years? Select answer from the options below 192 for 2026 and 590 overall. 54 for 2026 and 216 overall. 54 for 2026 and 590 overall. 192 for 2026 and 864 overall.
- Pearsall Company's defined benefit pension plan had a projected benefit obligation (PBO) of $265,000 on January 1, 2021. During 2021, pension benefits paid were $40,000. The discount rate for the plan for this year was 10%. Service cost for 2021 was $80,000. Plan assets (fair value) is $480,000. The expected interest rate is 10%. Plan assets actual increase during the year was $45,000. The amount of the PBO expense recorded in the income statement on December 31, 2021, is: |A) $85,000. B) $114,500. |C) $151,500. D) $154,500. D) None of these answer choices are correct.Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.6%x service years x final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2010 and is expected to retire at the end of 2044 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $84,000 at the end of 2024 and the company's actuary projects her salary to be $250,000 at retirement. The actuary's discount rate is 6%. Note: Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) At the beginning of 2025, the pension formula was amended to: 1.75% * Service years x Final year's salary x The amendment was made retroactive to apply the increased benefits to prior service years. Required: 1. What is the company's prior service cost at the beginning of 2025 with respect to Davenport after the amendment described above? 2. Since the amendment occurred at…Three employees of the Horizon Distributing Company will receive annual pension payments from the company when they retire. The employees will receive their annual payments for as long as they live. Life expectancy for each employee is 15 years beyond retirement. Their names, the amount of their annual pension payments, and the date they will receive their first payment are shown below: Annual Employee Payment Tinkers $ 33,000 Evers Chance 38,000 43,000 Date of First Payment 12/31/2027 12/31/2028 12/31/2029 Required: 1. Compute the present value of the pension obligation to these three employees as of December 31, 2024. Assume a 9% interest rate. 2. The company wants to have enough cash invested at December 31, 2027, to provide for all three employees. To accumulate enough cash, they will make three equal annual contributions to a fund that will earn 9% interest compounded annually. The first contribution will be made on December 31, 2024. Compute the amount of this required annual…
- FMC Inc. provides its employees with a defined benefit pension plan. Details are as follows: Present value defined benefit obligation (DBO) — December 31, 2020 $7,000,000 Plan assets — December 31, 2020 $5,900,000 Plan’s actuary confirmed that 4% is the appropriate interest rate to use. Current service costs (CSC) for the year $590,000 Past service costs (PSC) (improvement in benefits) — January 1, 2020 $60,000 Expected ending DBO — December 31, 2020 $7,200,000 Expected ending plan assets — December 31, 2020 $6,500,000 Remitted to pension trustee — evenly throughout year $670,000 Payments to retirees — evenly throughout year $640,000 What journal entry should FMC prepare to record the remeasurement gains/losses and actuarial gains/losses for the year? Assume FMC reports under IFRS. Question 18 options: a) DR OCI — actuarial losses 200,000 DR OCI — losses on remeasurement of plan assets 600,000 CR Net defined benefit liability…The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2024 and 2025 are presented below ($ in millions): Information Provided by Pension Plan Actuary: a. Projected benefit obligation as of December 31, 2023 = $2,000. b. Prior service cost from plan amendment on January 2, 2024 = $600 (straight-line amortization for 10-year average remaining service period). c. Service cost for 2024 = $560. d. Service cost for 2025 = $610. e. Discount rate used by actuary on projected benefit obligation for 2024 and 2025 = 10%. f. Payments to retirees in 2024 = $420. g. Payments to retirees in 2025 = $490. h. No changes in actuarial assumptions or estimates. i. Net gain-AOCI on January 1, 2024 = $250. 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 = $1,500. b. 2024 contributions = $580. c. 2025 contributions = $630. d. Expected…Pendulum Enterprises has a defined benefit plan. Employees receive a pension equal to 2% of the average of the highest 5 years of salary and based on years of service. On December 31 2020, the fair value of the pension assets in the plan is $10.7 M, although pension contributions were in excess of $12.5 M, and the estimated pension obligation is $12.3M. By how much is the plan over or underfunded? (place answer without $ sign in the space below in millions of dollars at up to 2 decimal places) 신
