PrintReferencesPension data for David Emerson Enterprises include the following:Discount rate, 10%Projected benefit obligation, January 1Projected benefit obligation, December 31Accumulated benefit obligation, January 1Accumulated benefit obligation, December 31Cash contributions to pension fund, December 31Benefit payments to retirees, December 31Required:($ in millions)$46056540051525074Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the yearended December 31.Service costmilion

Step 1: Determine the general formula for computing the ending projected benefit obligation…

Answered: Print References Pension data for David…

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: Discount rate, 10% Projected benefit obligation, January 1 Projected benefit obligation, December 31 Accumulated benefit obligation, January 1 Accumulated benefit obligation, December 31 Cash contributions to pension fund, December 31 Benefit payments to retirees, December 31 Required: ($ in millions) $ 350 540 375 490 225 69 Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the year ended December 31. Note: Enter your answer in millions (i.e., 10,000,000 should be entered as 10). Service cost million
Pension data for David Emerson Enterprises include the following: ($ in millions)Discount rate, 10%Projected benefit obligation, January 1 $360Projected benefit obligation, December 31 465Accumulated benefit obligation, January 1 300Accumulated benefit obligation, December 31 415Cash contributions to pension fund, December 31 150Benefit payments to retirees, December 31 54 Required:Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the year ended December 31.
Pension data for David Emerson Enterprises Include the following: Discount rate, 12% Projected benefit obligation, January 1 Projected benefit obligation, December 31 Accumulated benefit obligation, January 1 Accumulated benefit obligation, December 31 Cash contributions to pension fund, December 31 Benefit payments to retirees, December 31 Service cost ($ in millions) million $300 470 Required: Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the year ended December 31. 305 420 155 55
Pension data for David Emerson Enterprises include the following: ($ 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
Pension data for Carolina Consulting Company included the following for the current calendar year: Service cost PBO, January 1 Plan assets, January 1 Amortization of prior service cost Amortization of net loss Discount rate, 6% Expected return on plan assets, Actual return on plan assets, 10% $116,000 830,000 880,000 6,800 2,800 8% Required: Determine pension expense for the year. (Amounts to be deducted should be indicated with a minus sign.) Pension Expense Pension expense
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Projected Benefit Obligation Balance, January 1, 2024 Service cost Interest cost, discount rate, 5% Gain due to changes in actuarial assumptions in 2024 Pension benefits paid Balance, December 31, 2024 Plan Assets Balance, January 1, 2024 Actual return on plan assets (Expected return on plan assets, $49) Cash contributions Pension benefits paid Balance, December 31, 2024 January 1, 2024, balances: Pension asset ($ in millions) $ 680 70 34 (18) (34) $ 732 ($ in millions) $ 740 44 85 (34) $ 835 ($ in millions) $ 60 30 124 Prior service cost-AOCI (amortization $6 per year) Net gain-AOCI (any amortization over 10 years) Required: Prepare a pension spreadsheet to show the relationship among the PBO, plan assets, prior service cost, the net gain, pension expense, and the net pension asset.
Pension data for Millington Enterprises include the following: (S in millions) Discount rate, 10% Projected benefit obligation, January 1 Projected benefit obligation, December 31 Accumulated benefit obligation, January 1 Accumulated benefit obligation, December 31 Cash contributions to pension fund, December 31 Benefit payments to retirees, December 31 $360 465 300 415 150 54 Required: Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the year ended December 31.
Analyzing Changes in Plan Assets and PBO The following information pertains to a company's defined benefit plan for the year. Balance Fair value of plan assets, Jan. 1 Fair value of plan assets, Dec. 31 Projected benefit obligation, Jan. 1 Net pension asset (liability), Dec. 31 Activity for the Year Actual return on plan assets $300 Contributions to plan assets 450 Service cost 500 $ 400 Discount rate 8% Expected rate of return on plan assets 7% Required a. Calculate benefits paid to retirees during the year. Note: Do not use a negative sign with your answer. Other $ Check X b. Calculate any actuarial gain or loss on the PBO for the year. Note: Use a negative sign to indicate a loss. $5,000 Dr. 5,625 Dr. 5,000 Cr. 200 Cr. x
Items Balance, Jan. 1, 2025 (a) Service Cost (b) Interest Cost (c) Actual Return (d) Contributions (e) Benefits Journal Entry for 2025 Balance, Dec. 31, 2025 The service cost for 2025 is O $115000. O $6000. O $37000. O $38000. Annual Pension Expense ?? dr 15000 dr General Journal Entries 16000 cr $37000 Pharoah Corporation Pension Worksheet Cash $37000 cr ?? Show Transcribed Text Pension Asset/ Liability ?? Memo Record Projected Benefit Obligation $115000 cr $115000 dr ?? Plan Assets ??
Analyzing Pension Gain/Loss Spears Company presents the following information related to its pension plan for the year, before recording pension expense. Projected Benefit Obligation, Jan. 1: $300,000 Cr Projected Benefit Obligation, Dec. 31: 325,000 Cr Accumulated OCI-Pension Gain/Loss, Jan. 1: 12,000 Cr Plan Assets, Jan. 1: 280,000 Dr Plan Assets, Dec.31: 295,000 Dr Actuarial loss on PBO, determined at Dec. 31: $4,200 Contributions to pension fund: 10,000 Benefits paid: 15,000 Average remaining service period of employees, current and next year: 20 years Expected rate of return: 10% Required: a, Determine the amortization of Accumulated OCI-Pension Gain/Loss for the current year, usign (1) corridor (minimum amortization) and (2) straight-line amortization based on average remaining service period. Note: Do not use negative signs with your answers. 1. Amortization under the corridor approach. 2. Amortization under the straight-line method. b. Determine the Accumulated OCI-Pension…
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