On January 1 of the current reporting year, Pepper Corporation's projected benefit obligation was $30.5 million. During the year, pension benefits paid by the trustee were $4.5 million. Service cost was $10.5 million. Pension plan assets earned $5.5 million as expected. At the end of the year, there was no net gain or loss and no prior service cost. The actuary's discount rate was 10%. Required: Determine the amount of the projected benefit obligation at December 31. (Enter your answers in millions rounded to 2 decimal places. Amounts to be deducted should be indicated with a minus sign.) ($ in millions) Beginning PBO Ending PBO

On January 1 of the current reporting year, Pepper Corporation's projected benefit obligation was $30.5 million. During the year, pension benefits paid by the trustee were $4.5 million. Service cost was $10.5 million. Pension plan assets earned $5.5 million as expected. At the end of the year, there was no net gain or loss and no prior service cost. The actuary's discount rate was 10%. Required: Determine the amount of the projected benefit obligation at December 31. (Enter your answers in millions rounded to 2 decimal places. Amounts to be deducted should be indicated with a minus sign.) ($ in millions) Beginning PBO Ending PBO

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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Pension data for David Emerson Enterprises include the following: ($ in millions) Discount rate, 10% Projected benefit obligation, January 1 440 Projected benefit obligation, December 31 545 Accumulated benefit obligation, January 1 380 Accumulated benefit obligation, December 31 495 Cash contributions to pension fund, December 31 230 Benefit payments to retirees, December 31 70 Required: Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the year ended December 31. Service cost ___________ million
Haresh
None
Subject: accounting
The following information pertains to Havana Corporation's defined benefit pension plan: ($ in thousands) Projected benefit obligation Plan assets Prior service cost-AOCI Net loss-AOCI Multiple Choice $530 thousand. $648 thousand. At the end of 2021, Havana contributed $670 thousand to the pension fund and benefit payments of $624 thousand were made to retirees. The expected rate of return on plan assets was 10%, and the actuary's discount rate is 8%. There were no changes in actuarial estimates and assumptions regarding the PBO. What is Havana's 2021 actual return on plan assets? $1,154 thousand. 2021 Beginning balances $(6,300) 6,060 630 750 None of these are correct. $ 2022 Beginning balances $ (6,804) 6,636 565 816
Sagar
Sagar
The PBO was $100 million at the beginning of the year. Service cost for the year was $12 million. At the end of the year, pension benefits paid by the trustee were $8 million and there were no pension-related OCI account. The actuary's discount rate was 5%. What was the amount fo the PBO at the end of the year? (Enter your answer in million, round to the nearest million, without dollar sign, ex. 123 or -123).
Pearsall Company has a defined benefit pension plan. On December 31 (the end of the fiscal year), the company received the PBO report from the actuary. The following information was included in the report: ending PBO, $112,000; benefits paid to retirees, $11,500; interest cost, $6,500. The discount rate applied by the actuary was 10%. What was the service cost for the year? Multiple Choice $52,000. $5,000. $94,000. $18,000. There is no correct answer.
Brooks Co. had pension plan assets and PBO of $150,000 on 1/1/24. Service cost for the year was $30,000. It contributed $28,000 during the year and paid benefits of $20,000. The interest rate was 10%. The actual return was $14,000. Compute pension expense. Show computations'
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