Rachel Company revealed the following information for the current year: Fair value of plan assets-January 1 Projected benefit obligation-January 1 Current service cost Past service cost Actual return on plan assets Contribution to the plan Benefits paid to retirees Discount rate 6,700,000 7,600,000 1,450,000 300,000 500,000 1,500,000 800,000 | 10% 1. What is the employee benefit expense? a. 1,840,000 b. 1,540,000 c. 2,510,000 d. 1,750,000 2. What is the remeasurement gain or loss on plan assets? a. 170,000 gain b. 170,000 loss c. 670,000 gain d. 670,000 loss

Rachel Company revealed the following information for the current year: Fair value of plan assets-January 1 Projected benefit obligation-January 1 Current service cost Past service cost Actual return on plan assets Contribution to the plan Benefits paid to retirees Discount rate 6,700,000 7,600,000 1,450,000 300,000 500,000 1,500,000 800,000 | 10% 1. What is the employee benefit expense? a. 1,840,000 b. 1,540,000 c. 2,510,000 d. 1,750,000 2. What is the remeasurement gain or loss on plan assets? a. 170,000 gain b. 170,000 loss c. 670,000 gain d. 670,000 loss

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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Concept explainers

Financial and legal aspects of employment

Federal and state legislation, regulation of all labor laws, and government-imposed employment law all contribute to a legal environment. Employment law governs the relationship between employer and employee. Labor laws govern the relationship between employee groups such as labor unions and their employers. Many employment laws have been enacted by the government to protect the financial rights and interests of employees. To protect an individual's employment, the United States Department of Labor has enacted 180 worker protection laws. It also covers financial and workplace safety laws such as minimum wage requirements, parental leave benefits, paid leave benefits, social security, and discrimination.

Question

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This topic is about employee benefits. Please choose the correct letter of answer.

Rachel Company revealed the following information for the
current year:
Fair value of plan assets-January 1
Projected benefit obligation-January 1
Current service cost
Past service cost
Actual return on plan assets
Contribution to the plan
Benefits paid to retirees
Discount rate
6,700,000
7,600,000
1,450,000
300,000
500,000
1,500,000
800,000
10%
1. What is the employee benefit expense?
a. 1,840,000
b. 1,540,000
c. 2,510,000
d. 1,750,000
2. What is the remeasurement gain or loss on plan assets?
a. 170,000 gain
b. 170,000 loss
c. 670,000 gain
d. 670,000 loss

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