Homework Help is Here – Start Your Trial Now!
Business
Accounting
Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2021. The provisions of the plan we not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to e 10% rate of return. The actual return was also 10% in 2021 and 2022." A consulting firm, engaged as actuary, recommends 5% as the appropriate discount rate. The service cost is $280,000 for 2021 and $370,000 for 2022. Year-end funding is $290,000 for 2021 and $300,000 for 2022. No assumptions or estimates were revised during 2021. *We assume the estimated return was based on the actual return on similar investments at the inception of the pl and that, since the estimate didn't change, that also was the actual rate in 2022. Required: Calculate each of the following amounts as of both December 31, 2021, and December 31, 2022: (Enter your ansv in thousands (i.e., 200,000 should be entered as 200).) December 31, 2021 December 31, 2022 1. Projected benefit obligation 2. Plan assets 3. Pension expense 4. Net pension asset or net pension liability

Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2021. The provisions of the plan we not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to e 10% rate of return. The actual return was also 10% in 2021 and 2022." A consulting firm, engaged as actuary, recommends 5% as the appropriate discount rate. The service cost is $280,000 for 2021 and $370,000 for 2022. Year-end funding is $290,000 for 2021 and $300,000 for 2022. No assumptions or estimates were revised during 2021. *We assume the estimated return was based on the actual return on similar investments at the inception of the pl and that, since the estimate didn't change, that also was the actual rate in 2022. Required: Calculate each of the following amounts as of both December 31, 2021, and December 31, 2022: (Enter your ansv in thousands (i.e., 200,000 should be entered as 200).) December 31, 2021 December 31, 2022 1. Projected benefit obligation 2. Plan assets 3. Pension expense 4. Net pension asset or net pension liability

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

please do not copy paste show full working 

Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2021. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10% rate of return. The actual return was also 10% in 2021 and 2022. A consulting firm, engaged as actuary, recommends 5% as the appropriate discount rate. The service cost is $280,000 for 2021 and $370,000 for 2022. Year-end funding is $290,000 for 2021 and $300,000 for 2022. No assumptions or estimates were revised during 2021. * We assume the estimated return was based on the actual return on similar investments at the inception of the plan and that, since the estimate didn't change, that also was the actual rate in 2022. Required: Calculate each of the following amounts as of both December 31, 2021, and December 31, 2022: (Enter your answers in thousands (i.e., 200,000 should be entered as 200).) December 31, 2021 December 31, 2022 1. Projected benefit obligation 2. Plan assets 3. Pension expense 4. Net pension asset or net pension liability
Transcribed Image Text:Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2021. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10% rate of return. The actual return was also 10% in 2021 and 2022. A consulting firm, engaged as actuary, recommends 5% as the appropriate discount rate. The service cost is $280,000 for 2021 and $370,000 for 2022. Year-end funding is $290,000 for 2021 and $300,000 for 2022. No assumptions or estimates were revised during 2021. * We assume the estimated return was based on the actual return on similar investments at the inception of the plan and that, since the estimate didn't change, that also was the actual rate in 2022. Required: Calculate each of the following amounts as of both December 31, 2021, and December 31, 2022: (Enter your answers in thousands (i.e., 200,000 should be entered as 200).) December 31, 2021 December 31, 2022 1. Projected benefit obligation 2. Plan assets 3. Pension expense 4. Net pension asset or net pension liability
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
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