The KLM Corporation reported the following information regarding its defined benefits pension plan for 2020: 1/1/2022 return actuarial gain resulting from excess of actual return over expected. ..($350,000) Plan assets 1/1/2022 $ 2,570,000 Projected Benefits Liability 1/1/2022 $3,000,000. Average remaining years of service for current employees is 10 years. Required: intion of the actuarial gain should be recogni

The KLM Corporation reported the following information regarding its defined benefits pension plan for 2020: 1/1/2022 return actuarial gain resulting from excess of actual return over expected. ..($350,000) Plan assets 1/1/2022 $ 2,570,000 Projected Benefits Liability 1/1/2022 $3,000,000. Average remaining years of service for current employees is 10 years. Required: intion of the actuarial gain should be recogni

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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On January 1, 2021, Pharoah Co. has the following balances: Projected benefit obligation Fair value of plan assets Service cost The settlement rate is 11%. Other data related to the pension plan for 2021 are: $3700000 Benefits paid Actual return on plan assets Amortization of net gain 3200000 Amortization of prior service costs due to increase in benefits Contributions O $3644000. O $3890000. O $4115000. O $3700000. The fair value of plan assets at December 31, 2021 is $320000 108000 520000 245000 415000 34000
Current Attempt in Progress Blossom Company provides the following information about its defined benefit pension plan for the year 2020. $ 89,400 Service cost Contribution to the plan 104,800 Prior service cost amortization 9,700 Actual and expected return on plan assets 64,400 Benefits paid 40,800 Plan assets at January 1, 2020 627,300 Projected benefit obligation at January 1, 2020 697,700 Accumulated OCI (PSC) at January 1, 2020 149,700 Interest/discount (settlement) rate 10 % Compute the pension expense for the year 2020. Pension expense for 2020
) Maytag Service Co. reported the following for its defined-benefit pension plan for 2021: Settlement rate 3% Expected rate of return on plan assets 6.5% Service cost $750,000 Actual return on plan assets $460,000 Benefits paid to retirees $485,000 Average remaining service life of existing employees 10 years Projected…
Pharoah Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets. Projected Plan Assets Value Benefit Obligation 2019 $2,320,000 $2,204,000 2020 2,784,000 2,900,000 2021 3,422,000 3,016,000 2022 4,176,000 3,480,000 The average remaining service life per employee in 2019 and 2020 is 10 years and in 2021 and 2022 is 12 years. The net gain or loss that occurred during each year is as follows: 2019, $324,800 loss; 2020, $104,400 loss; 2021, $12,760 loss; and 2022, $29,000 gain. (In working the solution, the gains and losses must be ted to arrive at year-end balances.) Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the four years, setting up an appropriate schedule. Year Minimum Amortization of Los 2019 24 2020 2$ 2021 2$ 2022 2$
Blossom Inc. has beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets. Projected Benefit Obligation Plan Assets Value 2024 $1,080,000 $972,000 2025 1,350,000 1,188,000 2026 1,728,000 1,566,000 2027 2,268,000 2,160,000 The average remaining service life per employee in 2024 and 2025 is 8 years and in 2026 and 2027 is 11 years. The net gain or loss that occurred during each year is as follows: 2024, $178,200 gain; 2025, $43,200 gain; 2026, $32,400 loss; and 2027, $16,200 loss. (In working the solution, the gains and losses must be aggregated to arrive at year-end balances.) Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the 4 years, setting up an appropriate schedule. (Round answers to O decimal places, e.g. 22,500.)
What's AllenCo's total "pension expense" for 2020?
Sarasota Company provides the following information about its defined benefit pension plan for the year 2020. Service cost $ 88,500 Contribution to the plan 107,100 Prior service cost amortization 10,600 Actual and expected return on plan assets 63,100 Benefits paid 40,800 Plan assets at January 1, 2020 648,000 Projected benefit obligation at January 1, 2020 688,100 Accumulated OCI (PSC) at January 1, 2020 148,600 Interest/discount (settlement) rate 11 % Compute the pension expense for the year 2020. Pension expense for 2020 $enter the Pension expense for 2020 in dollars
Menan
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.
Wildhorse Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2020 and 2021. 2020 2021 Plan assets (fair value), December 31 $817,830 $993,330 Projected benefit obligation, January 1 819,000 936,000 Pension asset/liability, January 1 163,800 Cr. ? Prior service cost, January 1 292,500 280,800 Service cost 70,200 105,300 Actual and expected return on plan assets 28,080 35,100 Amortization of prior service cost 11,700 14,040 Contributions (funding) 134,550 140,400 Accumulated benefit obligation, December 31 585,000 643,500 Interest/settlement rate 10 % 10 % Prepare the journal entries to record the pension expense and the company’s funding of the pension plan for both years.
On January 1, 2022, Seascape Ltd. reported the following balances relating to their defined benefit pension plan. Seascape Ltd. uses ASPE. Defined benefit obligation $ 2,100,000 Fair value of plan assets. 1,900,000 Other data related to the pension plan for 2022 are: Current service cost 110,000 Contributions to the plan 105,000 Benefits paid.. 180,000 Actual return on plan assets. 142,000 Interest (discount) rate 7% Past service costs, Jan 1 120,000 Actuary adjustment, Dec 31 220,000 Pension Asset/Liability account on Balance Sheet Instructions a) Calculate the defined benefit obligation at December 31, 2022. b) Calculate the fair value of plan assets at December 31, 2022. c) Calculate pension expense for 2022. d) Prepare the journal entries to record the pension expense and the contributions for 2022. e) How would your answer be different if the company used IFRS? f) What is the funded status of the plan on December 31, 2022? Indicate whether it is underfunded or overfunded.
Presented below is information related to Ivanhoe Inc. pension plan for 2021. Service cost $ 860000 Actual return on plan assets 200000 Interest on projected benefit obligation 420000 Amortization of net loss 70000 Amortization of prior service cost due to increase in benefits 170000 Expected return on plan assets 190000 What amount should be reported for pension expense in 2021? 1100000 1320000 1510000 1330000