The following information relates to Oriole, Incorporated:Plan assets (at fair value)Pension expenseProjected benefit obligationAnnual contribution to planAccumulated OCI (PSC)For the Year Ended December 31,○ $0.O $540000.O $2460000.O $174000.2025$160800076500019800008100006300002026$22860005940002460000594000540000The amount reported as the liability for pensions on the December 31, 2026 balance sheet is

Answered: The amount reported as the liability…

The amount reported as the liability for pensions on the December 31, 2026 balance sheet is $0. O $540000. O $2460000. O $174000.

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

Employee Benefits

In an organization employees are the most important resource and most important asset. They can lead an organization to the sky or can be the reason for unsuccessful of business. Therefore, it is very much important that employees of an organization should be satisfied by the environment of the organization and most importantly with the salary, wages incentives, etc.

Question

The following information relates to Oriole, Incorporated:
Plan assets (at fair value)
Pension expense
Projected benefit obligation
Annual contribution to plan
Accumulated OCI (PSC)
For the Year Ended December 31,
○ $0.
O $540000.
O $2460000.
O $174000.
2025
$1608000
765000
1980000
810000
630000
2026
$2286000
594000
2460000
594000
540000
The amount reported as the liability for pensions on the December 31, 2026 balance sheet is

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Sandhill Corporation reports the following January 1, 2023 balances for its defined benefit pension plan, which it accounts for under IFRS: plan assets, $460,000; defined benefit obligation, $460,000. Other data relating to three years of operation of the plan are as follows: 2023 2024 2025 Annual service cost $34,800 $43,700 $58,600 Discount rate 10% 10% 10% Actual return on plan assets 37,100 50,040 54,000 Funding of current service cost 34,800 43,700 58,600 Funding of past service cost 74,000 78,500 Benefits paid 31,500 37,490 49,000 Past service cost (plan amended, 1/1/24) 348,000 Change in actuarial assumptions establishes a December 31, 2025 defined benefit obligation of 1,196,000
Current Attempt in Progress The actuary for the pension plan of Oriole Company calculated the following net gains and losses: Incurred during the Year (Gain) or Loss 2025 $(675,000) 2026 246,000 2027 973,000
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