Westridge Manufacturing's defined benefit pension plan had a PBO (Projected Benefit Obligation) of $425,000 on January 1, 2023. During 2023, pension benefits paid were $65,000. The discount rate for the plan for this year was 8%. Service cost for 2023 was $110,000. Plan assets (fair value) increased during the year by $78,000. What was the amount of the PBO at December 31, 2023? A. $360,000 B. $504,000 C. $470,000 D. $548,000

Westridge Manufacturing's defined benefit pension plan had a PBO (Projected Benefit Obligation) of $425,000 on January 1, 2023. During 2023, pension benefits paid were $65,000. The discount rate for the plan for this year was 8%. Service cost for 2023 was $110,000. Plan assets (fair value) increased during the year by $78,000. What was the amount of the PBO at December 31, 2023? A. $360,000 B. $504,000 C. $470,000 D. $548,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 3RE: Pinecone Company has plan assets of 500,000 at the beginning of the current year and expects to earn...

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Pinecone Company has plan assets of 500,000 at the beginning of the current year and expects to earn 12% on its plan assets during the year. Pinecones service cost is 230,000, and its interest cost is 55,000. Compute Pine-cones pension expense for the current year.
Given the following information for Tyler Companys pension plan at the beginning of the year, calculate the corridor, excess net loss (gain), and amortized net loss (gain). Assume an average remaining service life of 15 years.
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Pearsall Company's defined benefit pension plan had a projected benefit obligation (PBO) of $265,000 on January 1, 2021. During 2021, pension benefits paid were $40,000. The discount rate for the plan for this year was 10%. Service cost for 2021 was $80,000. Plan assets (fair value) is $480,000. The expected interest rate is 10%. Plan assets actual increase during the year was $45,000. The amount of the PBO expense recorded in the income statement on December 31, 2021, is: |A) $85,000. B) $114,500. |C) $151,500. D) $154,500. D) None of these answer choices are correct.
At January 1, 2025, Ivanhoe Company had plan assets of $300,400 and a projected benefit obligation of the same amount. During 2025, service cost was $27,500, the settlement rate was 10%, actual and expected return on plan assets were $25,900, contributions were $20,100, and benefits paid were $17,800. Prepare a pension worksheet for Ivanhoe for 2025. (Enter all amounts as positive.) Items Pension Expense $ Balance 1/1/25 Service cost Interest cost Actual return Contributions Benefits $ Journal entry IVANHOE COMI General Journal Entries $ Cash Balance, 12/31/25 Prepare a pension worksheet for Ivanhoe for 2025. (Enter all amounts as positive.) HOE COMPANY Pension Asset/Liability > > Memo Record Projected $ Benefit Obligation > > > > $ > > > > A $ Plan Assets
At January 1, 2025, Crane Company had plan assets of $254,500 and a projected benefit obligation of the same amount. During 2025, service cost was $26,600, the settlement rate was 10%, actual and expected return on plan assets were $24,500, contributions were $20,800, and benefits paid were $16,800. Prepare a pension worksheet for Crane for 2025.
On January 1, 2020, McGee Co. had the following balances: Projected benefit obligation $7,800,000 Fair value of plan assets 7,800,000 Other data related to the pension plan for 2020: Service cost 315,000 Contributions to the plan 459,000 Benefits paid 450,000 Actual return on plan assets 444,000 Settlement rate 9% Expected rate of return 6% Instructions (a) Determine the projected benefit obligation at December 31, 2020. There are no net gains or losses. (b) Determine the fair value of plan assets at December 31, 2020. (c) Calculate pension expense for 2020. (d) Prepare the journal entry to record pension expense and the contributions for 2020.
On January 1, 2024, Onyeocha Climbing Academy instituted a defined benefit pension plan for its employees. The annual service cost for each year of 2024 and 2025 was $740,000. The interest rate used to determine the projected benefit obligation is 12%. Both the actual and the expected return on plan assets are 10% for both years. Onyeocha funded the plan in the amount of $540,000 each January 1, beginning on January 1, 2024. What pension liability should Onyeocha report in its balance sheet for the year ended December 31, 2025? $321,400 Explanation PBO, January 1, 2024 Service cost Interest cost Gains/losses Retiree payments PBO, December 31, 2024 Service cost Interest cost (12% × $740,000) Gains/losses Retiree payments PBO, December 31, 2025 Net pension liability: $1,568,800 - $1,247,400 = $321,400 $0 Plan assets, Jan, 1, 2024 740,000 Funding 0 Return (10% × $540,000) 0 0 $ 740,000 Plan assets, December 31, 2024 $740,000 Funding 88,800 Return (10% × $1,134,000) 0 0 0 $540,000 54,000 $…
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At January 1, 2020, Sarasota Company had plan assets of $283,600 and a projected benefit obligation of the same amount. During 2020, service cost was $26,900, the settlement rate was 10%, actual and expected return on plan assets were $25,800, contributions were $19,500, and benefits paid were $17,500.Prepare a pension worksheet for Sarasota Company for 2020.
Skysong Inc. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets $1,710,000 Projected benefit obligation 1,995,000 Pension liability 285,000 Prior service cost 246,000 As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost for 2020 $135,000 Settlement rate, 6% Actual return on plan assets in 2020 112,000 Amortization of prior service cost 24,000 Expected return on plan assets 165,000 Unexpected gain from change in projected benefit obligation, due to change in actuarial predictions 215,000 Contributions in 2020 148,000 Benefits paid retirees in 2020 180,000
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