Madsen Company reported the following information for:2020Sales revenueCost of goods soldOperating expensesOdividends220,000Unrealized holding gain on available-for-sale debtsecurities 180,000CashO $420,000$2,040,0001,400,000$128,000For 2020, Madsen would report other comprehensiveincome of8,000.a.b

OCI, or Other Comprehensive Income, comprises components that affect equity but are not included in…

Answered: For 2020, Madsen would report other…

Business

Accounting

For 2020, Madsen would report other comprehensive income of

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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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
Current accounting standards require that the discount rate used for pension plans be: Multiple Choice estimated future average market rates. the rates at which the pension benefits could effectively be settled. current market rate for the year. the average market rate since the beginning of the plan.
Ivanhoe Corp. provides the following information about its post-retirement health-care benefit plan for the year 2020: Current service cost Contribution to the plan Actual return on plan assets Benefits paid Plan assets at January 1, 2020 Defined post-retirement benefit obligation at January 1, 2020 Discount rate (a) $204,500 Post-retirement benefit expense $ 47,750 141,950 91,000 1,597,600 1,823,100 11% Assuming Opsco follows IFRS, calculate the post-retirement benefit expense for 2020.
The accumulated benefit obligation measures __the shortest possible period for funding to maximize the tax deduction. __the pension obligation on the basis of the plan formula applied to years of service to date and based on future salary levels. __the level cost that will be sufficient, together with interest to provide the total benefits at retirement. __the pension obligation on the basis of the plan formula applied to years of service to date and based on existing salary levels.
The following facts apply to the pension plan of Novak Inc. for the year 2020. Plan assets, January 1, 2020 $490,400 Projected benefit obligation, January 1, 2020 490,400 Settlement rate 8 % Service cost 38,500 Contributions (funding) 27,300 Actual and expected return on plan assets 48,000 Benefits paid to retirees 32,500 Using the preceding data, compute pension expense for the year 2020. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2020 and the year-end balances in the related pension accounts. (Enter all amounts as positive.) NOVAK INC.Pension Worksheet—2020 General Journal Entries Memo Record Items Annual PensionExpense Cash Pension Asset/
Explain the purpose and use of Form W 4 from 2020 or later.
S1: Under a defined contribution plan, the amount of a participant’s future benefits is determined by the contributions paid by the employer, the participant, or both, and the operating efficiency and investment earnings of the fund. S2: Under a defined benefit plan, the payment of promised retirement benefits depends on the financial position of the plan and the ability of contributors to make future contributions to the plan as well as the investment performance and operating efficiency of the plan. Only S1 is true None is true Only S2 is true Both are true
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The following facts apply to the pension plan of Splish Inc. for the year 2020. Plan assets, January 1, 2020 $525,500 Projected benefit obligation, January 1, 2020 525,500 Settlement rate 8% Service cost 36,800 Contributions (funding) 23,800 Actual and expected return on plan assets 49,800 Benefits paid to retirees 30,300 Using the preceding data, compute pension expense for the year 2020. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2020 and the year-end balances in the related pension accounts.
If your school has a subscription to the FASB Codification, log in and prepare responses to the following. Provide Codification references for your responses. CE20.1 Access the glossary (“Master Glossary”) to answer the following. a. What is an accumulated benefit obligation? b. What is a defined benefit postretirement plan? c. What is the definition of “actuarial present value”? d. What is a prior service cost?
The following facts apply to the pension plan of Teal Inc. for the year 2020. Plan assets, January 1, 2020 $534,900 Projected benefit obligation, January 1, 2020 534,900 Settlement rate 8 % Service cost 40,500 Contributions (funding) 23,800 Actual and expected return on plan assets 53,000 Benefits paid to retirees 31,900 Using the preceding data, compute pension expense for the year 2020. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2020 and the year-end balances in the related pension accounts. (Enter all amounts as positive.)
Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2024. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10% rate of return. The actual return was also 10% in 2024 and 2025. A consulting firm, engaged as actuary, recommends 6% as the appropriate discount rate. The service cost is $150,000 for 2024 and $200,000 for 2025. Year-end funding is $160,000 for 2024 and $170,000 for 2025, No assumptions or estimates were revised during 2024. "We assume the estimated return was based on the actual return on similar investments at the inception of the plan and that, since the estimate didn't change, that also was the actual rate in 2025. Required: Calculate each of the following amounts as of both December 31, 2024, and December 31, 2025; Note: Enter your answers in thousands (i.e., 200,000 should be entered as 200). Enter a liability as a negative amount.