You gathered the following information related to Ashley Company's the defined benefit plan for the current year endedDecember 31:• Fair value of plan assets: P2,100 million at January 1, and P2,300 million at December 31• Present value of obligation to provide benefits: P2,200 million at January 1, and P2,600 million at December 31• Contributions paid to the fund: P80 million• Benefits paid to retired employees: P50 millionThe defined benefit cost for the year isO P200 millionO P120 millionP280 millionO P250 million

step 1: calculation of beginning funded status =beginning plan assets – beginning PBO…

Answered: You gathered the following information…

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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Cullumber Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about the plan. Vested benefit obligation Accumulated benefit obligation Projected benefit obligation Plan assets (fair value) Settlement rate and expected rate of return Pension asset/liability Service cost for the year 2020 Contributions (funding in 2020) Benefits paid in 202- Actual return on the plan assets $ Net pension liability gains and losses $ (a) Compute the actual return on the plan assets in 2020. Net gain or loss amortization January 1, 2020 $1,640 (d) Compute pension expense for 2020. Pension expense 2,060 $ $ 2,390 1,770 620 230 December 31, 2020 $2,060 2,610 3,230 2,490 (b) Compute the amount of the other comprehensive income (G/L) as of December 31, 2020. (Assume the January 1, 2020, balance was zero.) (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) 10 % ? (c) Compute the amount of net gain or loss…
Shamrock Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances related to this plan. Plan assets (market-related value) $565,000 Projected benefit obligation 656,000 Pension asset/liability 91,000 Cr. Prior service cost 86,000 Net gain or loss (debit) 92,000 As a result of the operation of the plan during 2020, the actuary provided the following additional data for 2020. Service cost $98,000 Settlement rate, 9%; expected return rate, 10% Actual return on plan assets 50,000 Amortization of prior service cost 26,000 Contributions 126,000 Benefits paid retirees 92,000 Average remaining service life of active employees 10 years Using the preceding data, compute pension expense for Shamrock Corp. for the year 2020 by preparing a pension worksheet that shows the journal entry for pension expense. (Enter all amounts as positive.) Use the market-related…
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
Presented below is pension information related to Tyre Recycling Inc., for the calendar year 2019. The corporation uses ASPE. Current service costs $ 50,000 Contributions to the plan 55,000 Actual return on plan assets 40,000 Defined benefit obligation (beginning of year) 600,000 Fair value of plan assets (beginning of year) 400,000 Interest cost on the obligation 10% The pension expense to be reportedfor 2019 is Select one: a. $110,000. b. $70,000. c. $65,000. d. $50,000. e. None of the above.
What is the fair value of the plan assets at December 31?
Erickson Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about the plan. January 1,2020 December 31,2020 Vested benefit obligation $1,500 $1,900 Accumulated benefit obligation 1,900 2,730 Projected benefit obligation 2,500 3,300 Plan assets (fair value) 1,700 2,620 Settlement rate and expected rate of return 10% Pension asset/liability $ 800 $ ? Service cost for the year 2020 400 Contributions (funding in 2020) 700 Benefits paid in 2020 200 Instructions Compute the actual return on the plan assets in 2020. Compute the amount of the other comprehensive income (G/L) as of December 31, 2020. (Assume the January 1, 2020, balance was zero.) Compute the amount of net gain or loss amortization for 2020 (corridor approach). Compute pension expense for 2020.
What amount should Webb Company contribute in order to report an accrued liability for retirement benefit cost of P200,000 in its December 31, 2005 balance sheet? Webb Company implemented a defined benefit plan for its employees on January 1, 2002. During 2002 and 2003, Webb's contributions fully funded the plan. The following data are provided for 2004 and 2005: 2005 estimated 2004 actual Projected benefit obligation, 12/31 Accumulated benefit obligation, 12/31 Plan assets at fair value Projected benefit obligation in excess of plan assets Retirement benefit expense Employer's contribution P7,500,000 5,200,000 6,750,000 P7,000,000 5,000,000 6,000,000 750,000 900,000 ? 1,000,000 800,000 500,000 (a) P1,000,000 (b) P700,000 (c) P600,000 O (d) P500,000

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