The following information pertains to X's defined benefit pension plan:Prepaid pension cost at the start of the yearCurrent service costInterest expense related to planActual income on plan assetsP2,00019,00038,00022,00052,00040,000Past service costCurrent year contribution3) In its current year Balance sheet, what amount should X report aspension cost?a. 45,000b. 49,000C. 67,000d. 87,000 5) How much benefit is attributed for services rendered by Mr. X?No.2, Social Security System retirement benefit is an example of athe period which the benefit is earned by the employee, rather than4) No.1, The cost of providing employee benefits should be recognized inwhen it is payable.No 2. Social Security System retirement benefit is an example of adefined benefit post employment benefit plan.a. true, trueb. true, falsec. false, trued. false, falseABC Company's defined benefit plan provides a benefit of 2% of finalsalary for each year of service. The person is payable at the age of 65 Mr.X is an employee of ABC Company. It was estimated that Mr. X finalsalary level will be P150, 000 per month./ How much benefit is attributed for services rendered by Mr. X?a. 2, 400b. 122, 400C. 28, 800d. 0benefit of P400, 000 forfitswill

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to X's defined benefit pension plan: The following Prepaid pension cost at the start of the year Current service cost Interest expense related to plan Actual income on plan assets Past service cost Current year contribution 3) In its current year Balance sheet, what amount should X report as P2,000 19,000 38,000 22,000 52,000 40,000 pension cost? a. 45,000 b. 49,000 C. 67,000 d. 87,000

to X's defined benefit pension plan: The following Prepaid pension cost at the start of the year Current service cost Interest expense related to plan Actual income on plan assets Past service cost Current year contribution 3) In its current year Balance sheet, what amount should X report as P2,000 19,000 38,000 22,000 52,000 40,000 pension cost? a. 45,000 b. 49,000 C. 67,000 d. 87,000

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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Pension data for Sterling Properties include the following: Service cost, 2024 Projected benefit obligation, January 1, 2024 Plan assets (fair value), January 1, 2024 Prior service cost-AOCI (2024 amortization, $8) Net loss-AOCI (2024 amortization, $1) Interest rate, 5% Expected return on plan assets, 9% Actual return on plan assets, 10% ($ in thousands) $ 127 560 600 92 113 Required: Determine pension expense for 2024. Note: Enter your answers in thousands (i.e., 10,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.
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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 $987000. The amount of AOCI (net gain) amortized in 2026 is
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4) Electronic Distribution has a defined benefit pension plan. Characteristics of the plan during 2021 are as follows: ($ millions) PBO balance, January 1 $ 480 Plan assets balance, January 1 350 Service cost 75 Interest cost 45 Gain from change in actuarial assumption 26 Benefits paid (36 ) Actual return on plan assets 23 Contributions 2021 65 The expected long-term rate of return on plan assets was 8%. There were no AOCI balances related to pensions on January 1, 2021, but at the end of 2021, the company amended the pension formula, creating a prior service cost of $13 million. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Required: 1. Calculate the pension expense for 2021.2. Prepare the journal entries to record (a) pension expense, (b) gains or losses, (c) prior service cost, (d) funding, and (e) payment of benefits for 2021.3. What amount will Electronic Distribution report in…
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Pension data for Sterling Properties include the following: Service cost, 2021 Projected benefit obligation, January 1, 2021 Plan assets (fair value), January 1, 2021 Prior service cost-AOCI (2021 amortization, $8) Net loss-AOCI (2021 amortization, $1) Interest rate, 8% Expected return on plan assets, 12% Actual return on plan assets, 13% Service cost Interest cost Required: Determine pension expense for 2021. (Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.) Pension Expense Expected return on plan assets Amortization of prior service cost Amortization of net loss Pension expense $ ($ in thousands) $ 117 0 600 700 87 108
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