Financial Accounting Kaplan Services Company (KSC) has 62employees, 33 of whom are assigned toDivision A and 29 to Division B. KSC incurred$377,580 of fringe benefits cost during 2014.RequiredDetermine the amount of the fringe benefitscost to be allocated to Division A and toDivision B.

Step 1: Define Fringe Benefit CostIt is the percentage of perquisites paid to the wages to an…

Answered: Kaplan Services Company (KSC) has 62…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 6P

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QJX. Co funded defined benefit plan for its employees. On 1 January 2005, the fair value of the plan assets was $310,000 and the present value of the obligation was $200,000. It was recorded that the past service cost of $1,400 was the results of changes introduced during the year ended 31 December 2005. During the year of 2005, the entity had contributed $85,000 to the scheme. The current service cost was $25,000 and the payment to its retired employees during the year amounted to $35,000. The entity uses a discount rate of 18% and expects its return on the plan assets to be 10%. Calculate the defined benefit costs that should be recognised in the statement of profit or loss for the year ended 31 December 2005.

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Kaplan Services Company (KSC) has 62 employees, 33 of whom are assigned to Division A and 29 to Division B. KSC incurred $377,580 of fringe benefits cost during 2014. Required Determine the amount of the fringe benefits cost to be allocated to Division A and to Division B.