The PBO was $100 million at the beginning of the year and $108 million at the end of the year. Service cost for the year was $15 million. At the end of year, there were no pension-related other comprehensive income amounts. The actuary's discount rate was 5%. What amount of the retiree benefits paid by the trustee? (Enter your answer in million, round to the nearest million, without dollar sign, ex. 123 or -123).

The PBO was $100 million at the beginning of the year and $108 million at the end of the year. Service cost for the year was $15 million. At the end of year, there were no pension-related other comprehensive income amounts. The actuary's discount rate was 5%. What amount of the retiree benefits paid by the trustee? (Enter your answer in million, round to the nearest million, without dollar sign, ex. 123 or -123).

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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Pearsall Company has a defined benefit pension plan. On December 31 (the end of the fiscal year), the company received the PBO report from the actuary. The following information was included in the report: ending PBO, $112,000; benefits paid to retirees, $11,500; interest cost, $6,500. The discount rate applied by the actuary was 10%. What was the service cost for the year? Multiple Choice $52,000. $5,000. $94,000. $18,000. There is no correct answer.
Harrison Forklift's pension expense includes a service cost of $12 million. Harrison began the year with a pension liability of $32 million (underfunded pension plan). 1. Interest cost, $8; expected return on assets, $6; amortization of net loss, $2. 2. Interest cost, $8; expected return on assets, $6; amortization of net gain, $2. 3. Interest cost, $8; expected return on assets, $6; amortization of net loss, $2; amortization of prior service cost, $3 million. Required: Prepare the appropriate general journal entries to record Harrison's pension expense in each of the above independent situations regarding the other (non-service cost) components of pension expense ($ in millions): (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions. (i.e., 10,000,000 should be entered as 10).) Journal entry worksheet 1. Prepare the appropriate journal entry to record pension expense in situation 1 above. 2.…
Louie Company has a defined benefit pension plan. On December 31 (the end of the fiscal year), the company received the PBO report from the actuary. The following information was included in the report: ending PBO, $110,000; benefits paid to retirees, $10,000; interest cost, $8,000. The discount rate applied by the actuary was 8%. What was the service cost for the year? O 2,000 12,000 O 18,000 O 92,000
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The PBO was $100 million at the beginning of the year and $114 million at the end of the year. At the end of the year, pension benefits paid by the trustee were $6 million and there were no pension-related OCI account. The actuary's discount rate was 5%. What was the amount of the service cost for the year? (Enter your answer in million, round to the nearest million, without dollar sign, ex. 123 or -123).
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The factors affecting pension expense are not always obvious.As the accountant for Sunlight City, you determine the following with respect to the city's pensions in a particular year.Service cost $356,000Interest on total pension liability 400,000Actual earnings on pension plan investments 500,000Projected earnings on pension plan investments 450,000Employer contribution to the plan 180,000Benefits paid to retirees 211,000 Based on the information provided, what should the city report as its pension expense for the year? Suppose that the benefits paid to retirees were actually $251,000 rather than $211,000. How would that affect the pension expense? Explain. Suppose also that the city failed to contribute anything to the pension plan. How would that affect the pension expense to be reported on the government‐wide statements? Explain. How would it affect the pension expenditure to be reported on the statements of the general fund?
On January 1 of the current reporting year, Coda Company's projected benefit obligation was $29.3 million. During the year, pension benefits paid by the trustee were $3.3 million. Service cost was $9.3 million. Pension plan assets earned $4.3 million as expected. At the end of the year, there was no net gain or loss and no prior service cost. The actuary's discount rate was 10%. Required:Determine the amount of the projected benefit obligation at December 31. (Enter your answers in millions rounded to 2 decimal places. Amounts to be deducted should be indicated with a minus sign.)
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2
The projected benefit obligation was $80 million at the beginning of the year and $85 million at the end of the year. Service cost for the year was $10 million. At the end of the year, there were no pension-related other comprehensive income accounts. The actuary’s discount rate was 5%. What was the amount of the retiree benefits paid by the trustee?
The Carrasco Company has provided you the following information pertaining to its defined benefit pension plan that was adopted on January 1, 20X1: The service cost was $750,000 during 20X1 and $1,125,000 during 20X2. The contribution to the pension plan was $600,000 on December 31, 20X1 and $1,200,000 on December 31, 20X2. The actuarially determined discount rate and the expected return on plan assets are both 10%. The actual return on plan assets was 10.5%. Retirement benefits pertaining to years of service prior to 20X1 were not granted to the employees. What is the pension expense for the year ended December 31, 20X2? Multiple Choice $1,140,000 $1,065,000 $1,200,000 $1,137,000