The following information relates to the defined benefit pension plan for the employees of a company: 1/1/20 12/31/20 12/31/21 Projected benefit obligation $216,000 $303,000 $416,000 Accumulated benefit obligation 191,000 289,000 379,000 Fair value of plan assets 150,000 262,000 439,000 Accumulated OCI--gains -0- 67,000 169,000 The company estimates that the average remaining service life is 40 years. The company's contribution was $112,000 in 2021 and benefits paid were $30,000. The amount of accumulated OCI-gains amortized in 2021 is $ answer. Note: a year's beginning is the previous year's ending.) (If there should be no corridor amortization, then enter 0. If your answer is a decimal, there is no need to round your

The following information relates to the defined benefit pension plan for the employees of a company: 1/1/20 12/31/20 12/31/21 Projected benefit obligation $216,000 $303,000 $416,000 Accumulated benefit obligation 191,000 289,000 379,000 Fair value of plan assets 150,000 262,000 439,000 Accumulated OCI--gains -0- 67,000 169,000 The company estimates that the average remaining service life is 40 years. The company's contribution was $112,000 in 2021 and benefits paid were $30,000. The amount of accumulated OCI-gains amortized in 2021 is $ answer. Note: a year's beginning is the previous year's ending.) (If there should be no corridor amortization, then enter 0. If your answer is a decimal, there is no need to round your

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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The following information is for the pension plan for the employees of Carla Vista, Inc. 12/31/25 12/31/26 Accumulated benefit obligation $2,780,000 $3,740,000 Projected benefit obligation 3,080,000 3,980,000 Fair value of plan assets 3,180,000 3,610,000 AOCI - Net (gain) or loss (405,060) (460,000) Settlement rate 7% 7% Expected rate of return 6% 5% Carla Vista estimates that the average remaining service life is 15 years. Carla Vista's contribution was $504,000 in 2026 and the benefits paid were $250,000. (a) * Your answer is incorrect. Calculate the interest cost for 2026. Interest cost for 2026 17,000
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.
Peach Corporation uses IFRS. Presented below is information relate to Peach Corporation's defined benet pension plan for calendar 2023: Defined benefit obligation, January 1 200,000 Fair value of plan assets, January 1 180,000 Current service cost 27,000 Contributions to plan 25,000 Actual and expected return on plan assets 9,000 Benefits paid to retirees 40,000 Interest (discount) rate 10% The balance of the defined benefit obligation at December 31, 2023 is a) $185,000. b) $187,000. c) $207,000. d) $245,000.
Cullumber Corporation provides the following information about its defined benefit pension plan (in hundreds of thousands of dollars) for 2023: $9 21 Actual return on plan assets Contributions from employer Benefits paid to retirees Actuarial loss due to change in actuarial assumptions 20 Defined benefit expense Remeasurement gain or loss (OCI) Effect on company's shareholders' equity 10 Current service cost Opening balance, DBO Opening balance, plan assets $23 100 At the end of the year, Cullumber revised the terms of its pension plan, which resulted in past service costs of $35. Assuming that Cullumber applies an 10% interest cost and follows IFRS, determine the company's 2023 defined benefit expense and the effect of the pension plan on the company's shareholders' equity. (Enter answer in hundreds of thousands of dollars.) $ 100
Sunland Corporation is a private company with a defined benefit pension plan. The following information is available for Sunland for 2023: Opening balance, DBO Opening balance, plan assets Service cost Employer contributions paid evenly through 2023 Applicable interest or discount rate Actual return on plan assets Actuarial loss due to change in actuarial assumptions $188,000 179,000 eTextbook and Media 52,000 69,000 10% 22,500 12,500 Assuming that Sunland follows IFRS, determine the 2023 effect of the pension plan on defined benefit expense and the company's shareholders' equity. total defined benefit expense and a related decrease in the net income and retained earnings by $ 58400 and
The following data relate to Ramesh Company's defined benefit pension plan: ($ in millions) Plan assets at fair value, January 1 $720 Expected return on plan assets 72 Actual return on plan assets 58 Contributions to the pension fund (end of year) 124 Amortization of net loss 14 Pension benefits paid (end of year) 17 Pension expense 96 Required: Determine the amount of pension plan assets at fair…
The following information is related to the defined benefit pension plan of Xavier Company for 2012: Service cost $60,000 Contributions to pension plan 142,400 Benefits paid to retirees 150,000 Plan assets (fair value), January 1 740,000 Plan assets (fair value), December 31 850,000 Unamortized Prior Service Cost, January 1 160,000 Unamortized Prior Service Cost, December 31 110,000 Actual return on plan assets 150,000 PBO, January 1 900,000 PBO, December 31 960,000 ABO, December 31 890,000 Discount rate 10% Long-term expected return on plan assets 9% Required: 1. Using the above information calculate pension expense for 2012? 2. Will it be necessary for the company to report a minimum pension liability at Dec. 31, 2012? If so what is the amount.
D
The following information relates to the pension plan for the employees of Cullumber Co.: Accum. benefit obligation Projected benefit obligation Fair value of plan assets AOCI - net (gain) or loss Settlement rate (for year) Expected rate of return (for year) O $665200 gain. O $282200 loss. 1/1/20 $110600 gain. $272400 gain. $8140000 8665000 7825000 -0- $ 12/31/20 8560000 9358000 9820000 (1402000 ) 11% 8% 12/31/21 $ 11500000 12907000 10954000 (1570000 ) 11% Cullumber estimates that the average remaining service life is 16 years. Cullumber's contribution was $1213000 in 2021 and benefits paid were $877000. The unexpected gain or loss on plan assets in 2021 is 7%
The following information relates to the pension plan for the employees of Blossom Company: Accum. benefit obligation Projected benefit obligation Fair value of plan assets AOCI - net (gain) or loss Settlement rate (for year) Expected rate of return (for year) 1/1/25 $7940000 8465000 7625000 O $26250. O $17456. O $20238. O $14188. 0 12/31/25 $8360000 9158000 9620000 (1382000) 11% 8% 12/31/26 $11300000 12707000 10754000 (1550000) 11% 7% Blossom estimates that the average remaining service life is 16 years. Blossom's contribution was $1323000 in 2026 and benefits paid were $987000. The amount of AOCI (net gain) amortized in 2026 is
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 $5700000 $107000. $35300. $41300. $102300. 6100000 5300000 0 12/31/20 $ 5900000 6300000 6700000 1023000 11% 9% 12/31/21 $ 7500000 8100000 7300000 1070000 10% Carla Vista's contribution was $910000 in 2021 and benefits paid were $820000. Carla Vista estimates that the average remaining service life is 10 years. The corridor for 2021 was $670000. The amount of AOCI-net loss amortized in 2021 was 7%
Goodday Ltd. has a defined benefit pension plan and a December 31 year-end. The following information relates to the plan: Balances: Defined benefit obligation, end of 20X7 Pension plan assets, fair value, end of 20X7 $5,215,000 4.810,000 405,000 cr. 69,200 dr. 8,601,400 cr 4.200,000 cr. SFP net defined benefit liability, end of 20X7 SFP accumulated OCI, pension, end of 20X7 Retained earnings, end of 20X7 20X8 eamings, prior to any pension expense Current service cost for 20X8, measured using the projected unit credit method New past service cost granted in 20X8, negative because benefits were reduced and the liability has declined Contributions made to the pension plan assets paid at end of 601,900 (356,000) 20X8 450,000 Actuarial gain in 20X8, negative because caused by higher anticipated future mortality rates and the liability has declined Actual earnings in the fund, reported by the pension fund trustee, including interest, dividends, and change in fair value Benefits paid to…