On January 1, 2021, Parks Co. has the following balances: Projected benefit obligation $5,600,000 Fair value of plan assets 5,000,000 The settlement rate is 10%. Other data related to the pension plan for 2021 are: Service cost $320,000 Amortization of prior service costs 72,000 Contributions 360,000 Benefits paid 335,000 Actual return on plan assets 352,000 Amortization of net gain 24,000 Calculate the fair value of plan assets at December 31, 2021.

On January 1, 2021, Parks Co. has the following balances: Projected benefit obligation $5,600,000 Fair value of plan assets 5,000,000 The settlement rate is 10%. Other data related to the pension plan for 2021 are: Service cost $320,000 Amortization of prior service costs 72,000 Contributions 360,000 Benefits paid 335,000 Actual return on plan assets 352,000 Amortization of net gain 24,000 Calculate the fair value of plan assets at December 31, 2021.

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 6RE

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Pinecone Company has plan assets of 500,000 at the beginning of the current year and expects to earn 12% on its plan assets during the year. Pinecones service cost is 230,000, and its interest cost is 55,000. Compute Pine-cones pension expense for the current year.
On January 1, 2021, Parks Co. has the following balances: Projected benefit obligation $5,600,000 Fair value of plan assets 5,000,000The settlement rate is 10%. Other data related to the pension plan for 2021 are: Service cost $320,000 Amortization of prior service costs 72,000 Contributions 360,000 Benefits paid 335,000 Actual return on plan assets 352,000 Amortization of net gain 24,000The balance of the projected benefit obligation at December 31, 2021 is $6,480,000. $6,128,000. $6,145,000. $5,992,000.
On January 1, 2021, Carson Co. has the following balances: Projected benefit obligation $3,500,000 Fair value of plan assets 3,000,000 The settlement rate is 10%. Other data related to the pension plan for 2021 are: Service cost $300,000 Amortization of prior service costs due to increase in benefits 100,000 Contributions 500,000 Benefits paid 225,000 Actual return on plan assets 395,000 Amortization of net gain 30,000 The balance of the projected benefit obligation at December 31, 2021 is a. $4,150,000. b. $3,925,000. c. $3,900,000. d. $3,850,000.
On January 1, 2020, McGee Co. had the following balances: Projected benefit obligation $7,800,000 Fair value of plan assets 7,800,000 Other data related to the pension plan for 2020: Service cost 315,000 Contributions to the plan 459,000 Benefits paid 450,000 Actual return on plan assets 444,000 Settlement rate 9% Expected rate of return 6% Instructions (a) Determine the projected benefit obligation at December 31, 2020. There are no net gains or losses. (b) Determine the fair value of plan assets at December 31, 2020. (c) Calculate pension expense for 2020. (d) Prepare the journal entry to record pension expense and the contributions for 2020.
On January 1, 2021, Oriole Co. has the following balances: Projected benefit obligation $3650000 Fair value of plan assets 3150000 The settlement rate is 9%. Other data related to the pension plan for 2021 are: Service cost $315000 Amortization of prior service costs due to increase in benefits 106000 Contributions 515000 Benefits paid 240000 Actual return on plan assets 410000 Amortization of net gain 33000 The fair value of plan assets at December 31, 2021 is $3593000. $4060000. $3650000. $3835000.
On January 1, 2021, Crane Co. has the following balances: Projected benefit obligation $3450000 Fair value of plan assets 2950000 The settlement rate is 9%. Other data related to the pension plan for 2021 are: Service cost $295000 Amortization of prior service costs due to increase in benefits 98000 Contributions 495000 Benefits paid 220000 Actual return on plan assets 390000 Amortization of net gain 29000 The fair value of plan assets at December 31, 2021 is $3450000. $3840000. $3615000. $3389000.
On January 1, 2021, Sandhill Co. has the following balances: Projected benefit obligation $ 5200000 Fair value of plan assets 4600000 The settlement rate is 9%. Other data related to the pension plan for 2021 are: Service cost $ 316000 Amortization of prior service costs 70000 Contributions 356000 Benefits paid 331000 Actual return on plan assets 348000 Amortization of net gain 23600 The balance of the projected benefit obligation at December 31, 2021 is: $5494000. $5653000. $5984000. $5668000.
On January 1, 2020, KK Co. has the following balances: Defined benefit obligation P2,100,000 Fair value of plan assets 1,800,000 The discount rate is 10%. Other data related to the pension plan for 2020 are: Service cost P180,000 Past service costs due to increase in benefits 60,000 Contributions 300,000 Benefits paid 105,000 Actual return on plan assets 237,000 Net gain on liability 18,000 The fair value of plan assets at December 31, 2020 is?
The following information is related to the pension plan of Long, Inc. for 2021. Actual return on plan assets $170,000 Amortization of net gain 123,000 Amortization of prior service cost 130,000 Expected return on plan assets 190,000 Interest on projected benefit obligation 235,000 Service cost 690,000 Compute pension expense for 2021.
On January 1, 2021, Pharoah Co. has the following balances: Projected benefit obligation Fair value of plan assets Service cost The settlement rate is 11%. Other data related to the pension plan for 2021 are: $3700000 Benefits paid Actual return on plan assets Amortization of net gain 3200000 Amortization of prior service costs due to increase in benefits Contributions O $3644000. O $3890000. O $4115000. O $3700000. The fair value of plan assets at December 31, 2021 is $320000 108000 520000 245000 415000 34000
On January 1, 2021, Cullumber Co. has the following balances: Projected benefit obligation Fair value of plan assets Service cost The settlement rate is 11%. Other data related to the pension plan for 2021 are: $3550000 Benefits paid Actual return on plan assets Amortization of net gain 3050000 Amortization of prior service costs due to increase in benefits Contributions O $3987500. O $3940500. O $4241500. O $4015500. $301000 101000 501000 226000 The balance of the projected benefit obligation at December 31, 2021 is 396000 30100
On January 1, 2021, Carla Vista Co. has the following balances: Projected benefit obligation $3850000 Fair value of plan assets 3350000 The settlement rate is 11%. Other data related to the pension plan for 2021 are: Service cost $307000 Amortization of prior service costs due to increase in benefits 107000 Contributions 507000 Benefits paid 232000 Actual return on plan assets 402000 Amortization of net gain 30700 The balance of the projected benefit obligation at December 31, 2021 is: $4580500. $4332500. $4348500. $4273500.