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Problem 6: Information on KINETIC ACTIVE Co.s' plan assets is shown below: Fair value of plan assets, Jan. 1 Interest income (actual) Unrealized gains from fair value changes (actual) Costs of managing plan assets Tax on gross returns Discount rate 2,000,000 400,000 200,000 40,000 10% 12% Requirements: a. How much is the return on plan assets? b. How much is the ending balance of the fair value of plan assets? C How much is recognized in profit or loss and how much is recognized other comprehensive income?

Problem 6: Information on KINETIC ACTIVE Co.s' plan assets is shown below: Fair value of plan assets, Jan. 1 Interest income (actual) Unrealized gains from fair value changes (actual) Costs of managing plan assets Tax on gross returns Discount rate 2,000,000 400,000 200,000 40,000 10% 12% Requirements: a. How much is the return on plan assets? b. How much is the ending balance of the fair value of plan assets? C How much is recognized in profit or loss and how much is recognized other comprehensive income?

FINANCIAL ACCOUNTING
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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Problem 6: Information on KINETIC ACTIVE Co.s' plan assets is shown below: Fair value of plan assets, Jan. 1 2,000,000 Interest income (actual) 400,000 Unrealized gains from fair value changes (actual) Costs of managing plan assets Tax on gross returns 200,000 40,000 10% Discount rate 12% Requirements: a. How much is the return on plan assets? b. How much is the ending balance of the fair value of plan assets? . How much is recognized in profit or loss and how much is recognized other comprehensive income?
Transcribed Image Text:Problem 6: Information on KINETIC ACTIVE Co.s' plan assets is shown below: Fair value of plan assets, Jan. 1 2,000,000 Interest income (actual) 400,000 Unrealized gains from fair value changes (actual) Costs of managing plan assets Tax on gross returns 200,000 40,000 10% Discount rate 12% Requirements: a. How much is the return on plan assets? b. How much is the ending balance of the fair value of plan assets? . How much is recognized in profit or loss and how much is recognized other comprehensive income?
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