Various pension plan information of Kerem Company for 2019 and 2020 is as follows 2019 2020 Service cost $100,000 Interest cost on projected benefit obligation 54,000 (9) Discount rate 9% 9% Amortization of prior service cost 4,000 4,000 Plan assets (fair value), 1/1* 500,000 615,000 Projected benefit obligation, 1/1** (a) 720,000 Expected long-term rate of return on plan assets (b) 11% Amortization of net loss (d) 700 Accrued pension cost (liability), 12/31 () (k) Average service life of employees 10 years 10 years Pension expense (e) 110,850 Cumulative net loss, 1/1 68,000 (1) Expected return on plan assets 50,000 (h) Corridor (c) 72,000 *1/1/2021: $762,000 **1/1/2021: $857,800

Various pension plan information of Kerem Company for 2019 and 2020 is as follows 2019 2020 Service cost $100,000 Interest cost on projected benefit obligation 54,000 (9) Discount rate 9% 9% Amortization of prior service cost 4,000 4,000 Plan assets (fair value), 1/1* 500,000 615,000 Projected benefit obligation, 1/1** (a) 720,000 Expected long-term rate of return on plan assets (b) 11% Amortization of net loss (d) 700 Accrued pension cost (liability), 12/31 () (k) Average service life of employees 10 years 10 years Pension expense (e) 110,850 Cumulative net loss, 1/1 68,000 (1) Expected return on plan assets 50,000 (h) Corridor (c) 72,000 *1/1/2021: $762,000 **1/1/2021: $857,800

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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