The following information is related to the defined benefit penslon plan of Melissa Larson Company for the year:Service costContributions to pension planBenefits paid to retireesPlan assets (fair value), January 1Plan assets (fair value), December 31$ 90,000140,000110,000540,000650,00080,000800,000870,000Actual return on plan assetsPBO, January 1PBO, December 31Discount rate10%Long-term expected return on plan assets9 %Assuming no other relevant data exist, what is the pension expense for the year?Multiple Choice$90,000.$121,400.13 of 39Next >PrevShow All7 Question no....pages15....pdfQuestion no....pagesMacBook Air

Pension expense = Service cost + Interest cost + Expected return on plan assets

The following information is related to the defined benefit pension plan of Melissa Larson Company for the year: Service cost Contributions to pension plan Benefits paid to retirees Plan assets (fair value), January 1 Plan assets (fair value), December 31 Actual return on plan assets $ 90,000 140,000 110,000 540,000 650,000 ৪0, 000 ৪00, 000 870,000 PBO, January 1 PBO, December 31 Discount rate 10% 98 Long-term expected return on plan assets Assuming no other relevant data exist, what is the pension expense for the year?

The following information is related to the defined benefit pension plan of Melissa Larson Company for the year: Service cost Contributions to pension plan Benefits paid to retirees Plan assets (fair value), January 1 Plan assets (fair value), December 31 Actual return on plan assets $ 90,000 140,000 110,000 540,000 650,000 ৪0, 000 ৪00, 000 870,000 PBO, January 1 PBO, December 31 Discount rate 10% 98 Long-term expected return on plan assets Assuming no other relevant data exist, what is the pension expense for the year?

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

I. Broncos Co. reports pretax financial income of $70,000 for 20x1. The following items cause taxable income to be different than pretax financial income: ● ● Depreciation on the tax return is greater than depreciation on the income statement by $16,000. Rent collected on the tax return is greater than rent earned on the income statement by $22,000. Fines for pollution appear as an expense of $11,000 on the income statement. Interest income from City of Phoenix municipal bonds is $5,000. Broncos' tax rate is 30% for all years and the company expects to report taxable income in all future years. a) Compute taxable income. b) Prepare the journal entry to record income tax expense, deferred income tax, and income tax payable for 20x1. c) Compute net income for 20x1.
Rahul
The following information is related to the defined benefit pension plan of Avalanche Corporation for the year: Service cost $ 62,000 Contributions to pension plan 118,000 Benefits paid to retirees 156,000 Plan assets (fair value), January 1 641,000 Plan assets (fair value), December 31 758,000 Actual return on plan assets 155,000 PBO, January 1 925,000 PBO, December 31 923,500 Discount rate 10 % Long-term expected return on plan assets 9 % Assuming no other relevant data exist, what is the pension expense for the year? Multiple Choice $62,000. $89,810. $96,810. $154,500.
The following data relate to Ramesh Company's defined benefit pension plan: ($ in millions) $690 69 55 118 13 20 90 Plan assets at fair value, January 1 Expected return on plan assets Actual return on plan assets Contributions to the pension fund (end of year) Amortization of net loss Pension benefits paid (end of year) Pension expense Required: Determine the amount of pension plan assets at fair value on December 31. (Enter your answers in millions. Amounts to be deducted should be indicated with a minus sign.) Pension Plan Assets Beginning of the year End of the year
Determining Pension Expense The following information pertains to Qdobe Corporation’s defined benefit pension plan for 2020. Service cost $512,000 Actual and expected gain on plan assets 112,000 Actuarial loss on PBO incurred during 2020 128,000 Amortization of unrecognized prior service cost 16,000 Annual interest on pension obligation 160,000 What amount should Qdobe report as pension expense in its 2020 income statement? Assume no beginning balance in Accumulated OCI—Pension Gain/Loss. Pension expense, 2020
A-1
The manager of High Times Restaurant wants to determine the price to charge for various lunch plates. Discuss what managerial accounting information the marginal accountant should provide and how the information would be useful
Preparing a Pension Worksheet Levine Co. sponsored a defined benefit plan, which included January 1, 2020, balances of $3,000 and $2,880 in Plan Assets and Projected Benefit Obligation, respectively. During 2020, the company incurred $600 in service cost, made plan contributions of $126, and paid benefits to retirees for $90. The discount rate is 9% and the expected and actual rate of return on plan assets is 10%. Prepare a pension worksheet for 2020.Note: Use a negative sign for credits to accounts. Pension Worksheet Reported Net in Financial Statements Balance Sheet Income Statement PlanAssets PBO Net PensionAsset/Liability CashOutflow PensionExpense Balance, January 1, 2020 Service cost Interest cost Expected return Contributions to fund Benefit payments Balance, December 31, 2020
Pension data for the Broncos Company include the following for the current calendar year:Discount rate, 8%Expected return on plan assets, 10%Actual return on plan assets, 9%Service cost, $200,000January 1:PBO $1,400,000ABO 1,000,000Plan assets 1,500,000Amortization of prior service cost 20,000Amortization of net gain 4,000December 31:Cash contributions to pension fund $220,000Benefit payments to retirees 240,000Required:1) Determine pension expense for the year. Show your calculation. If not, no credit.2) Prepare the journal entries to record pension expense and funding for the year. 3) Compute the ending balance of PBO (balance on 12/31).
A company has a noncontributory, defined benefit pension plan. At December 31 of the current year, the company received the following information: Projected Benefit Obligation ($ in millions) Balance, January 1 $ 130 Service cost 23 Interest cost 13 Benefits paid (12) Balance, December 31 $ 154 Plan Assets Balance, January 1 $ 70 Actual return on plan assets 9 Contributions current year 23 Benefits paid (12) Balance, December 31 $ 90 The expected long-term rate of return on plan assets was 10%. There was no prior service cost and a negligible net loss—AOCI on January 1 of the current year. Required: Determine the company’s pension expense for the current year. Prepare the journal entries to record the company’s (a) pension expense, (b) funding, and (c) payment for the current year. Please don't give answer & formulae in image based format.. thanku
Information regarding the defined benefit pension plan of Neo Products included the following for 2024 ($ in millions):Plan assets, January 1$ 210Plan assets, December 31315 Return on plan assets30Employer contributions to the pension plan (end of year)126What amount of retiree benefits was paid at the end of 2024? Multiple Choice$51 million$21 million$72 million$105 million
The following data are for the pension plan for the employees of Carla Vista Company. Accumulated benefit obligation Projected benefit obligation Plan assets (at fair value) AOCL - net loss Settlement rate (for year) Expected rate of return (for year) 1/1/20 $5200000 $540000. $344000. $410000. $444000. 5430000 4610000 The actual return on plan assets in 2021 was 12/31/20 $ 5300000 5710000 6220000 956000 11% 9% 12/31/21 $6830000 7650000 6760000 1120000 9% Carla Vista's contribution was $860000 in 2021 and benefits paid were $764000. Carla Vista estimates that the average remaining service life is 15 years. 8%