Fajardo Company provided the following pension plan information:Projected benefit obligation – January 1, 20213,500,000Fair value of plan assets – January 1, 20212,800,000Pension benefits paid during the year250,000Current service cost for 20211,750,000Past service cost for 2021425,000Actual return on plan assets180,000Contribution to the plan1,500,000Actuarial loss due to change in assumption on PBO200,000Discount or settlement rate10% What is the net remeasurement loss for the current year?Group of answer choices100,000300,000400,000200,000

Expected return on plan assets = Fair value of plan asset x Discount rate = 2,800,000 x 10% =…

Answered: Fajardo Company provided the following…

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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JDS Shipyard's projected benefit obligation, accumulated benefit obligation, and plan assets were $65 million, $55 million, and $48 million, respectively, at the end of the year. a. What, if any, pension liability or pension asset must be reported in the balance sheet? b. What, if any, pension liability or pension asset must be reported in the balance sheet if the plan assets were $78 million instead? a b Net pension liability Net pension asset Answer is not complete. million million
Pronghorn Company provides the following information about its defined benefit pension plan for the year 2020. $ 214,000 Service cost Contribution to the plan 261,000 Prior service cost amortization 35,000 Actual and expected return on plan assets 127,000 Benefits paid 215,000 Plan assets at January 1, 2020 1,398,000 Projected benefit obligation at January 1, 2020 1,719,000 Accumulated OCI (PSC) at January 1, 2020 341,000 Interest/discount (settlement) rate 9 % Compute the pension expense for the year 2020. Pension expense for 2020
The following information is related to the defined benefit pension plan of Dreamworld Company for the year ended 12/31/2020: Service cost $ 60,000 110,000 150,000 640,000 750,000 150,000 900,000 960,000 Contributions to pension plan Benefits paid to retirees Plan assets (fair value), January 11 Plan assets (fair value), December 31 Actual return on plan assets PBO, January 1 PBO, December 31 Discount rate Long-term expected return on plan assets Prior Service Cost 1/1 $ 700,000 Average remaining years of service Assuming no other relevant data exist. Required: 10 years 10% 9% A. Calculate the company's pension expense for 2020. B. Make journal entry (entries) related to the plan at 12/31/2020.
On January 1, 2021, a company has the following balances for its defined-benefit plan: Projected benefit obligation $536,000Fair value of plan assets 804,000 Other data related to the pension plan for 2021 are: Amortization of accumulated OCI-loss $76,000 Decrease in projected benefit obligation due to changes in actuarial assumptions 165,000 Service cost 311,840 Interest cost 218,000 Amortization of prior service costs 133,000 Contributions 475,000 Benefits paid 272,740 Actual return on plan assets 398,000 Expected return on plan assets 406,000 The balance of the projected benefit obligation at December 31, 2021 is $__________.
Sandhill Company provides the following information about its defined benefit pension plan for the year 2025. Service cost Contribution to the plan $91,600 104,400 Prior service cost amortization 10,800 Actual and expected return on plan assets 64,600 Benefits paid 40,300 Plan assets at January 1, 2025 650,000 Projected benefit obligation at January 1, 2025 692,000 Accumulated OCI (PSC) at January 1, 2025 150,000 Interest/discount (settlement) rate 11% (a) Prepare a pension worksheet inserting January 1, 2025, balances, showing December 31, 2025. (Enter all amounts as positive.
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) Maytag Service Co. reported the following for its defined-benefit pension plan for 2021: Settlement rate 3% Expected rate of return on plan assets 6.5% Service cost $750,000 Actual return on plan assets $460,000 Benefits paid to retirees $485,000 Average remaining service life of existing employees 10 years Projected…
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Buffalo Enterprises provides the following information relative to its defined benefit pension plan. Balances or Values at December 31, 2020 Projected benefit obligation $2,761,900 Accumulated benefit obligation 1,970,300 Fair value of plan assets 2,283,700 Accumulated OCI (PSC) 207,900 Accumulated OCI—Net loss (1/1/20 balance, 0) 45,600 Pension liability 478,200 Other pension plan data for 2020: Service cost $94,400 Prior service cost amortization 42,000 Actual return on plan assets 128,900 Expected return on plan assets 174,500 Interest on January 1, 2020, projected benefit obligation 251,500 Contributions to plan 94,200 Benefits paid 141,200 (a) Prepare the note disclosing the components of pension expense for the year 2020. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).) Components of Pension…
Wildhorse Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2020 and 2021. 2020 2021 Plan assets (fair value), December 31 $817,830 $993,330 Projected benefit obligation, January 1 819,000 936,000 Pension asset/liability, January 1 163,800 Cr. ? Prior service cost, January 1 292,500 280,800 Service cost 70,200 105,300 Actual and expected return on plan assets 28,080 35,100 Amortization of prior service cost 11,700 14,040 Contributions (funding) 134,550 140,400 Accumulated benefit obligation, December 31 585,000 643,500 Interest/settlement rate 10 % 10 % Prepare the journal entries to record the pension expense and the company’s funding of the pension plan for both years.
On January 1, 2022, Seascape Ltd. reported the following balances relating to their defined benefit pension plan. Seascape Ltd. uses ASPE. Defined benefit obligation $ 2,100,000 Fair value of plan assets. 1,900,000 Other data related to the pension plan for 2022 are: Current service cost 110,000 Contributions to the plan 105,000 Benefits paid.. 180,000 Actual return on plan assets. 142,000 Interest (discount) rate 7% Past service costs, Jan 1 120,000 Actuary adjustment, Dec 31 220,000 Pension Asset/Liability account on Balance Sheet Instructions a) Calculate the defined benefit obligation at December 31, 2022. b) Calculate the fair value of plan assets at December 31, 2022. c) Calculate pension expense for 2022. d) Prepare the journal entries to record the pension expense and the contributions for 2022. e) How would your answer be different if the company used IFRS? f) What is the funded status of the plan on December 31, 2022? Indicate whether it is underfunded or overfunded.

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Projected benefit obligation – January 1, 2021	3,500,000
Fair value of plan assets – January 1, 2021	2,800,000
Pension benefits paid during the year	250,000
Current service cost for 2021	1,750,000
Past service cost for 2021	425,000
Actual return on plan assets	180,000
Contribution to the plan	1,500,000
Actuarial loss due to change in assumption on PBO	200,000
Discount or settlement rate	10%