Quebec's prepaid pension cost at December 31, 2002 is Quebec Company adopted a defined benefit pension plan on January 1, 2002. Quebec amortizes the past service cost over 16 years and funds past service cost by making equal payments to the fund trustee at the end of each of the first ten years. The current service cost is fully funded at the end of each year. The following data are available for 2002: Current service cost for 2002 P220,000 Past service cost: Amortized Funded 83,400 114,400 O (a) P114,400 (b) P83,400 (c) P31,000 (d) P 0

Quebec's prepaid pension cost at December 31, 2002 is Quebec Company adopted a defined benefit pension plan on January 1, 2002. Quebec amortizes the past service cost over 16 years and funds past service cost by making equal payments to the fund trustee at the end of each of the first ten years. The current service cost is fully funded at the end of each year. The following data are available for 2002: Current service cost for 2002 P220,000 Past service cost: Amortized Funded 83,400 114,400 O (a) P114,400 (b) P83,400 (c) P31,000 (d) P 0

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

The following information related to Company DDD’s pension plan: Plan asset, January 1, 20x8 P950,000 Defined benefit obligation, January 1, 20x8 1,000,000 Average remaining working life of employees at January 1, 20x8 10 years Service cost for 20x8 90,000 Discount rate at January 1, 20x8 10% Expected return on plan asset at January 1, 20x8 100,000 Remeasurement loss arising in 20x8 15,000 Past service cost 30,000 Vesting period for past service cost 2 years What amount of defined benefit cost should be recognized during 20x8?
Dell Company adopted a defined benefit pension plan on January 1, 20X1. Dell amortizes the initial prior service cost of $1,334,400 over 16 years. It assumes a 7% discount rate and an 8% expected rate of return. The following additional data are available for 20X1: Service cost for 20x1 Prior service cost amortization Employer contribution made at 12/31/20X1 Required: Compute the pension asset (liability) to be reported on Dell's December 31, 20X1, balance sheet. (A net pension liability should be indicated by a minus sign.) Answer is complete but not entirely correct. $ Pension asset (liability) to be reported $320,000 83,400 335,000 1,412,808
Pension data for Coda Corporation included the following for the current calendar year: Service cost PBO, January 1 Plan assets, January 1 Amortization of prior service cost $126,000 720,000 770,000 5,700 1,700 Amortization of net loss Discount rate, 10% Expected return on plan assets, 12% Actual return on plan assets, 14% Required: Determine pension expense for the year. (Amounts to be deducted should be indicated with a minus sign.) Pension Expense Pension expense
The following data relate to Hick's Cable Company’s defined benefit pension plan: ($ in millions) Plan assets at fair value, January 1 $ 790 Expected return on plan assets 79 Actual return on plan assets 63 Contributions to the pension fund (end of year) 138 Amortization of net loss 16 Pension benefits paid (end of year) 24 Pension expense 110 Required:Determine the amount of pension plan assets at fair value on December 31.
Tesla, Inc. sponsors a defined-benefit pension plan. The following data relates to theoperation of the plan for the year 2021.Service cost $ 545,000Contributions to the plan 330,000Actual return on plan assets 270,000Projected benefit obligation (beginning of year) 3,600,000Fair value of plan assets (beginning of year) 2,400,000The expected return on plan assets and the settlement rate were both 10%. The amountof pension expense reported for 2021 isa. $545,000.b. $635,000.c. $665,000.d. $905,000.
The Pension Protection Act of 2006 requires companies to correct funding shortfalls in their defined benefit plans within: A. 5 years B. 3 years C. 10 years D. 20 years E. 1 year
The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2024 and 2025 are presented below ($ in millions): Information Provided by Pension Plan Actuary: a. Projected benefit obligation as of December 31, 2023 = $3,350. b. Prior service cost from plan amendment on January 2, 2024 = $650 (straight-line amortization for 10-year average remaining service period). c. Service cost for 2024 = $650. d. Service cost for 2025 = $700. e. Discount rate used by actuary on projected benefit obligation for 2024 and 2025 = 10%. f. Payments to retirees in 2024 $510. g. Payments to retirees in 2025 $580. h. No changes in actuarial assumptions or estimates. 1. Net gain-AOCI on January 1, 2024 = $375. J. Net gains and losses are amortized for 10 years in 2024 and 2025. Information Provided by Pension Fund Trustee: a. Plan asset balance at fair value on January 1, 2024 = $2,400. b. 2024 contributions $670. c. 2025 contributions $720. d. Expected long-term rate…
The Carrasco Company has provided you the following information pertaining to its defined benefit pension plan that was adopted on January 1, 20X1: The service cost was $750,000 during 20X1 and $1,125,000 during 20X2. The contribution to the pension plan was $600,000 on December 31, 20X1 and $1,200,000 on December 31, 20X2. The actuarially determined discount rate and the expected return on plan assets are both 10%. The actual return on plan assets was 10.5%. Retirement benefits pertaining to years of service prior to 20X1 were not granted to the employees. What is the pension expense for the year ended December 31, 20X2? Multiple Choice $1,140,000 $1,065,000 $1,200,000 $1,137,000
Presented below is information related to Mikell Department Stores, Inc. pension plan for 2022. Service cost 375,000 Funding contribution for 2022 300,000 Settlement rate used in actuarial computation 8% Expected and actual return on plan assets 7% Amortization of Prior Service Costs 70,000 Amortization of net gains 35,000 Projected benefit obligation (at beginning of year) 420,000 Market-related (and fair) value of plan assets (at beginning of year) 380,000 No benefits were paid during 2022. Required: (a) Compute the amount of pension expense to be reported for 2022. (b) Prepare the journal entry to record pension expense for 2022.
Kmu
Presented below is pension information related to Tyre Recycling Inc., for the calendar year 2019. The corporation uses ASPE. Current service costs $ 50,000 Contributions to the plan 55,000 Actual return on plan assets 40,000 Defined benefit obligation (beginning of year) 600,000 Fair value of plan assets (beginning of year) 400,000 Interest cost on the obligation 10% The pension expense to be reportedfor 2019 is Select one: a. $110,000. b. $70,000. c. $65,000. d. $50,000. e. None of the above.
Citroen Company provides the following information about its defined benefit pension plan for the year 2021. Service cost $79,000 Contribution to the plan 92,000 Prior service cost amortization 9,500 Actual and expected return on plan assets 61,000 Benefits paid 50,000 Plan assets at January 1, 2021 720,000 Projected benefit obligation on January 1, 2021 770,000 Accumulated OCI (PSC) on January 1, 2021 120,000 Interest/discount (settlement) rate 9% Prepare a pension worksheet. Prepare the journal entry recording pension expense.