Pendulum Enterprises has a defined benefit plan. Employees receive a pension equal to 2% of the averageof the highest 5 years of salary and based on years of service. On December 31 2020, the fair value of thepension assets in the plan is $10.7 M, although pension contributions were in excess of $12.5 M, and theestimated pension obligation is $12.3M.Mary-Lou is considering retirement but wants to know how much she is entitled toreceive under this defined benefit plan. Her 5 years highest average earnings are$67,500 and she has 30 years of service. What is her annual pension benefit? (placevalue without a $ sign in the space below)A

Part 1: Answer: Mary-Lou's annual pension benefit is $33,750.Explanation:Part 2: Explanation:Step 1:…

Answered: Pendulum Enterprises has a defined…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Bob and George Corporation has a defined benefit pension plan for one employee. Annual payments are equal to the employee’s highest lifetime salary multiplied by 2.5% multiplied by the number of years with the entity. As of December 31, 2020, the employee has been with the company for 15 years and has a salary of P1,000,000. The employee is expected to retire in 25 years while projected salary increases are in line with forecasted inflation rates of 3% annually. The employee is then expected to live for 15 years after retiring and will receive the first pension payment one year after the retirement. Discount rate is 8% and PV and FV factors are as follows: FV of 1 at 3% for 25 periods 2.094 PV of ordinary annuity of 1 at 8% for 15 periods 8.559 PV of 1 at 8% for 25 periods 0.146 1. What is the annual pension payment to be used in computing the projected benefit obligation as of December 31, 2020?2. What is the projected benefit obligation as of December 31, 2020?
Pearl Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2020 in which no benefits were paid. 1. The actuarial present value of future benefits earned by employees for services rendered in 2020 amounted to $56,100. 2. The company’s funding policy requires a contribution to the pension trustee amounting to $136,572 for 2020. 3. As of January 1, 2020, the company had a projected benefit obligation of $903,400, an accumulated benefit obligation of $799,600, and a debit balance of $401,800 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $602,500 at the beginning of the year. The actual and expected return on plan assets was $54,400. The settlement rate was 8%. No gains or losses occurred in 2020 and no benefits were paid. 4. Amortization of prior service cost was $49,700 in 2020. Amortization of net gain or loss was not required in 2020.
Subject:
For many years Switches Ltd provided a defined benefit superannuation plan for its employees, but owing to concerns about its exposure to risk it has been phasing out the defined benefit superannuation plan and replacing it with a defined contribution superannuation plan. Most employees belong to the defined contribution superannuation plan. Switches Ltd has paid contributions of $160,000 to the trustee of the defined contribution plan for the year ended 30 June 2023, but the contribution payable for services rendered by employees in the fund was $180,000 for the year. There are only four employees in the defined benefit plan at 30 June 2023 and they are due to retire on 30 June 2026. The employees’ entitlement increases with the length of their employment. At 30 June 2022 they were entitled to receive three times their annual salary on retirement. By 30 June 2023 they were entitled to receive 3.2 times their annual salary on retirement. The aggregate salaries of the four members of…
Pendulum Enterprises has a defined benefit plan. Employees receive a pension equal to 2% of the average of the highest 5 years of salary and based on years of service. On December 31 2020, the fair value of the pension assets in the plan is $10.7 M, although pension contributions were in excess of $12.5 M, and the estimated pension obligation is $12.3M. By how much is the plan over or underfunded? (place answer without $ sign in the space below in millions of dollars at up to 2 decimal places) 신
Alicia has been working for JMM Corp. for 33 years. Alicia participates in JMM's defined benefit plan. Under the plan, for every year of service for JMM, she is to receive 2 percent of the average salary of her three highest consecutive calendar years of compensation from JMM. She retired on January 1, 2020. Before retirement, her annual salary was $588,000, $618,000, and $648,000 for 2017, 2018, and 2019. What is the maximum benefit Alicia can receive in 2020? Maximum benefit in 2020 [$] *PER MCGRAW-HILL, THE ANSWER IS NOT $370, 800*
I need both answer.....
Pronghorn Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2020 in which no benefits were paid. 1. The actuarial present value of future benefits earned by employees for services rendered in 2020 amounted to $56,100. 2. The company’s funding policy requires a contribution to the pension trustee amounting to $144,590 for 2020. 3. As of January 1, 2020, the company had a projected benefit obligation of $901,000, an accumulated benefit obligation of $807,400, and a debit balance of $397,700 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $605,700 at the beginning of the year. The actual and expected return on plan assets was $53,900. The settlement rate was 9%. No gains or losses occurred in 2020 and no benefits were paid. 4. Amortization of prior service cost was $50,500 in 2020. Amortization of net gain or loss was not required in 2020. (a)…
Martin Services Company provides its employees vacation benefits and a defined contribution pension plan. Employees earned vacation pay of $43,000 for the period. The pension plan requires a contribution to the plan administrator equal to 6% of employee salaries. Salaries were $600,000 during the period. a. Provide the journal entry for the vacation pay. If an amount box does not require an entry, leave blank. b. Provide the journal entry for the pension benefit. If an amount box does not require an entry, leave it blank.
Meman
L Company is evaluating amendments to its pensions plans. Plan 1 covers its salaried employees and Plan 2 provides benefits to its hourly workers. On January 1, 2016, L will grant employees in Plan 2 additional pension benefits of P318,000 based on their past service. Employees in this plan have an average period to vesting of 6 years. Plan 1 will be amended to reduce benefits by P160,000 (in exchange, employees will receive increased contributions to the company’s defined contribution plan). Employees in this plan have an average period to vesting of 5 years. What is the total past service cost included in pension expense 2016?
Urmilaben

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS