Pension plan : This is the plan devised by corporations to pay the employees an income after their retirement, in the form of pension. Types of pension plans: Defined contribution pension plans : In such plans, employers contribute fixed amounts annually, to the pension fund. The benefit amounts are based on size of pension fund available at the time of retirement. There is no commitment on the part of the employers to pay fixed retirement benefits. Defined benefit pension plans : In such plans, employers pay annual fixed contributions to employees as retirement benefits. Employers promise to pay fixed retirement benefits, which are computed based on the service period of employee, annual compensation of the employee, and age. To mention : The type of pension plan offered by Corporation M

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Answer 1

Question

Chapter 17, Problem 17.5BYP

(1)

To determine

Pension plan: This is the plan devised by corporations to pay the employees an income after their retirement, in the form of pension.

Types of pension plans:

Defined contribution pension plans: In such plans, employers contribute fixed amounts annually, to the pension fund. The benefit amounts are based on size of pension fund available at the time of retirement. There is no commitment on the part of the employers to pay fixed retirement benefits.

Defined benefit pension plans: In such plans, employers pay annual fixed contributions to employees as retirement benefits. Employers promise to pay fixed retirement benefits, which are computed based on the service period of employee, annual compensation of the employee, and age.

To mention: The type of pension plan offered by Corporation M

(2)

To determine

To mention: The persons who suffer the risk of reduction in retirement benefits in the plan offered by Corporation M

(3)

To determine

The amount entitled by an employee who contributes $1,000 in first year, and leaves the company in early second year, when the mutual fund of contributions value is 2%

(4)

To determine

To describe: The accounting treatment of pension plan for 2015

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Question 19 Which of the following correctly describes defined benefit (DB) pension plans? A- A typical example of DB plan is 401(K) savings account B- Retirement benefits depend on how much money has accumulated in an individual's account. C- Employers never need to report a liability related to DB plans D- Retirement benefits are based on the plan benefit formula. O A O B

Question 17 S1: Employee-sponsored retirement plans can be categorized into two: current service cost and projected benefit obligation. S2: Liabilities pertains to the settlements which resulted in an outflow of resources embodying economic benefits. S3: PAS 19, provides that only the unvested past service costs shall be recognized as expense immediately. one statement is true two of the statements are true all statements are false all statements are true

QUESTION 16 A 401 (k) Plan: O A. is a mandatory retirement program. B. is not a very effective way of achieving your retirement goals. O C. is funded fully by your employer as a retirement benefit for you. O D. is a defined benefit retirement program. O E. None of the above. QUESTION 17 Which of the following is most true regarding retirement planning? A. You can expect public sources to fund most of your retirement needs. O B. Ownership for retirement planning has shifted more from employers and government to individuals. O C. You do not need to worry about funding your retirement from multiple sources. O D. Retirement planning should be delayed until you are at least 30 years old or own your own home.

Answer 2

Question

Chapter 17, Problem 17.5BYP

(1)

To determine

Pension plan: This is the plan devised by corporations to pay the employees an income after their retirement, in the form of pension.

Types of pension plans:

Defined contribution pension plans: In such plans, employers contribute fixed amounts annually, to the pension fund. The benefit amounts are based on size of pension fund available at the time of retirement. There is no commitment on the part of the employers to pay fixed retirement benefits.

Defined benefit pension plans: In such plans, employers pay annual fixed contributions to employees as retirement benefits. Employers promise to pay fixed retirement benefits, which are computed based on the service period of employee, annual compensation of the employee, and age.

To mention: The type of pension plan offered by Corporation M

(2)

To determine

To mention: The persons who suffer the risk of reduction in retirement benefits in the plan offered by Corporation M

(3)

To determine

The amount entitled by an employee who contributes $1,000 in first year, and leaves the company in early second year, when the mutual fund of contributions value is 2%

(4)

To determine

To describe: The accounting treatment of pension plan for 2015

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Answer 3

Question

Chapter 17, Problem 17.5BYP

(1)

To determine

Pension plan: This is the plan devised by corporations to pay the employees an income after their retirement, in the form of pension.

Types of pension plans:

Defined contribution pension plans: In such plans, employers contribute fixed amounts annually, to the pension fund. The benefit amounts are based on size of pension fund available at the time of retirement. There is no commitment on the part of the employers to pay fixed retirement benefits.

Defined benefit pension plans: In such plans, employers pay annual fixed contributions to employees as retirement benefits. Employers promise to pay fixed retirement benefits, which are computed based on the service period of employee, annual compensation of the employee, and age.

To mention: The type of pension plan offered by Corporation M

(2)

To determine

To mention: The persons who suffer the risk of reduction in retirement benefits in the plan offered by Corporation M

(3)

To determine

The amount entitled by an employee who contributes $1,000 in first year, and leaves the company in early second year, when the mutual fund of contributions value is 2%

(4)

To determine

To describe: The accounting treatment of pension plan for 2015

Expert Solution & Answer

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Answer 4

Question

Chapter 17, Problem 17.5BYP

(1)

To determine

Pension plan: This is the plan devised by corporations to pay the employees an income after their retirement, in the form of pension.

Types of pension plans:

Defined contribution pension plans: In such plans, employers contribute fixed amounts annually, to the pension fund. The benefit amounts are based on size of pension fund available at the time of retirement. There is no commitment on the part of the employers to pay fixed retirement benefits.

Defined benefit pension plans: In such plans, employers pay annual fixed contributions to employees as retirement benefits. Employers promise to pay fixed retirement benefits, which are computed based on the service period of employee, annual compensation of the employee, and age.

To mention: The type of pension plan offered by Corporation M

(2)

To determine

To mention: The persons who suffer the risk of reduction in retirement benefits in the plan offered by Corporation M

(3)

To determine

The amount entitled by an employee who contributes $1,000 in first year, and leaves the company in early second year, when the mutual fund of contributions value is 2%

(4)

To determine

To describe: The accounting treatment of pension plan for 2015

Expert Solution & Answer

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Answer 5

Chapter 17, Problem 17.5BYP

(1)

To determine

Pension plan: This is the plan devised by corporations to pay the employees an income after their retirement, in the form of pension.

Types of pension plans:

Defined contribution pension plans: In such plans, employers contribute fixed amounts annually, to the pension fund. The benefit amounts are based on size of pension fund available at the time of retirement. There is no commitment on the part of the employers to pay fixed retirement benefits.

Defined benefit pension plans: In such plans, employers pay annual fixed contributions to employees as retirement benefits. Employers promise to pay fixed retirement benefits, which are computed based on the service period of employee, annual compensation of the employee, and age.

To mention: The type of pension plan offered by Corporation M

(2)

To determine

To mention: The persons who suffer the risk of reduction in retirement benefits in the plan offered by Corporation M

(3)

To determine

The amount entitled by an employee who contributes $1,000 in first year, and leaves the company in early second year, when the mutual fund of contributions value is 2%

(4)

To determine

To describe: The accounting treatment of pension plan for 2015

Answer 6

Chapter 17, Problem 17.5BYP

(1)

To determine

Pension plan: This is the plan devised by corporations to pay the employees an income after their retirement, in the form of pension.

Types of pension plans:

Defined contribution pension plans: In such plans, employers contribute fixed amounts annually, to the pension fund. The benefit amounts are based on size of pension fund available at the time of retirement. There is no commitment on the part of the employers to pay fixed retirement benefits.

Defined benefit pension plans: In such plans, employers pay annual fixed contributions to employees as retirement benefits. Employers promise to pay fixed retirement benefits, which are computed based on the service period of employee, annual compensation of the employee, and age.

To mention: The type of pension plan offered by Corporation M

Answer 7

Chapter 17, Problem 17.5BYP

(1)

To determine

Pension plan: This is the plan devised by corporations to pay the employees an income after their retirement, in the form of pension.

Types of pension plans:

Defined contribution pension plans: In such plans, employers contribute fixed amounts annually, to the pension fund. The benefit amounts are based on size of pension fund available at the time of retirement. There is no commitment on the part of the employers to pay fixed retirement benefits.

Defined benefit pension plans: In such plans, employers pay annual fixed contributions to employees as retirement benefits. Employers promise to pay fixed retirement benefits, which are computed based on the service period of employee, annual compensation of the employee, and age.

To mention: The type of pension plan offered by Corporation M

Answer 8

(2)

To determine

To mention: The persons who suffer the risk of reduction in retirement benefits in the plan offered by Corporation M

Answer 9

(2)

To determine

To mention: The persons who suffer the risk of reduction in retirement benefits in the plan offered by Corporation M

Answer 10

(3)

To determine

The amount entitled by an employee who contributes $1,000 in first year, and leaves the company in early second year, when the mutual fund of contributions value is 2%

Answer 11

(3)

To determine

The amount entitled by an employee who contributes $1,000 in first year, and leaves the company in early second year, when the mutual fund of contributions value is 2%

Answer 12

(4)

To determine

To describe: The accounting treatment of pension plan for 2015

Answer 13

(4)

To determine

To describe: The accounting treatment of pension plan for 2015

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 17 - Prob. 17.1Q Ch. 17 - Prob. 17.2Q Ch. 17 - Prob. 17.3Q Ch. 17 - What is the vested benefit obligation?Ch. 17 - Prob. 17.5Q Ch. 17 - Prob. 17.6Q Ch. 17 - Name three events that might change the balance of...Ch. 17 - Prob. 17.8Q Ch. 17 - Prob. 17.9Q Ch. 17 - Prob. 17.10Q

Solution Summary: The author explains the type of pension plan offered by Corporation M.

Concept explainers

To mention: The persons who suffer the risk of reduction in retirement benefits in the plan offered by Corporation M

The amount entitled by an employee who contributes $1,000 in first year, and leaves the company in early second year, when the mutual fund of contributions value is 2%

To describe: The accounting treatment of pension plan for 2015

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Chapter 17 Solutions