The value of total pension cost for the year. Given information: Fair value of plan assets at the beginning is $954,500. Value of PBO at the beginning is $1,020,340. Service cost is $81,500. Settlement rate is 10%. Expected rate on plan assets is 16%. Actual return on plan assets is $123,400. Contribution for the year is $67,480. Benefit paid for the year is $47,440. AOCI related to prior service cost at the beginning is $65,840. Amortization of prior service cost is $15,500. Actuarial loss is $78,625. Average remaining service life of the employee base is 10 years.

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Answer 1

Question

Chapter 19, Problem 19.11E

a.

To determine

The value of total pension cost for the year.

Given information:

Fair value of plan assets at the beginning is $954,500.

Value of PBO at the beginning is $1,020,340.

Service cost is $81,500.

Settlement rate is 10%.

Expected rate on plan assets is 16%.

Actual return on plan assets is $123,400.

Contribution for the year is $67,480.

Benefit paid for the year is $47,440.

AOCI related to prior service cost at the beginning is $65,840.

Amortization of prior service cost is $15,500.

Actuarial loss is $78,625.

Average remaining service life of the employee base is 10 years.

b.

To determine

The value of closing balance of plan assets and PBO and indicate the funded status of the plan.

Given information:

Fair value of plan assets at the beginning is $954,500.

Value of PBO at the beginning is $1,020,340.

Service cost is $81,500.

Settlement rate is 10%.

Expected rate on plan assets is 16%.

Actual return on plan assets is $123,400.

Contribution for the year is $67,480.

Benefit paid for the year is $47,440.

AOCI related to prior service cost at the beginning is $65,840.

Amortization of prior service cost is $15,500.

Actuarial loss is $78,625.

Average remaining service life of the employee base is 10 years.

c.

To determine

The value of closing balance for accumulated other comprehensive income.

Given information:

Fair value of plan assets at the beginning is $954,500.

Value of PBO at the beginning is $1,020,340.

Service cost is $81,500.

Settlement rate is 10%.

Expected rate on plan assets is 16%.

Actual return on plan assets is $123,400.

Contribution for the year is $67,480.

Benefit paid for the year is $47,440.

AOCI related to prior service cost at the beginning is $65,840.

Amortization of prior service cost is $15,500.

Actuarial loss is $78,625.

Average remaining service life of the employee base is 10 years.

d.

To determine

To prepare: The journal entry to record current year pension cost.

Given information:

Fair value of plan assets at the beginning is $954,500.

Value of PBO at the beginning is $1,020,340.

Service cost is $81,500.

Settlement rate is 10%.

Expected rate on plan assets is 16%.

Actual return on plan assets is $123,400.

Contribution for the year is $67,480.

Benefit paid for the year is $47,440.

AOCI related to prior service cost at the beginning is $65,840.

Amortization of prior service cost is $15,500.

Actuarial loss is $78,625.

Average remaining service life of the employee base is 10 years.

e.

To determine

The reconciliation of the closing balance in accumulated other comprehensive income.

Given information:

Fair value of plan assets at the beginning is $954,500.

Value of PBO at the beginning is $1,020,340.

Service cost is $81,500.

Settlement rate is 10%.

Expected rate on plan assets is 16%.

Actual return on plan assets is $123,400.

Contribution for the year is $67,480.

Benefit paid for the year is $47,440.

AOCI related to prior service cost at the beginning is $65,840.

Amortization of prior service cost is $15,500.

Actuarial loss is $78,625.

Average remaining service life of the employee base is 10 years.

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Answer 2

Question

Chapter 19, Problem 19.11E

a.

To determine

The value of total pension cost for the year.

Given information:

Fair value of plan assets at the beginning is $954,500.

Value of PBO at the beginning is $1,020,340.

Service cost is $81,500.

Settlement rate is 10%.

Expected rate on plan assets is 16%.

Actual return on plan assets is $123,400.

Contribution for the year is $67,480.

Benefit paid for the year is $47,440.

AOCI related to prior service cost at the beginning is $65,840.

Amortization of prior service cost is $15,500.

Actuarial loss is $78,625.

Average remaining service life of the employee base is 10 years.

b.

To determine

The value of closing balance of plan assets and PBO and indicate the funded status of the plan.

Given information:

Fair value of plan assets at the beginning is $954,500.

Value of PBO at the beginning is $1,020,340.

Service cost is $81,500.

Settlement rate is 10%.

Expected rate on plan assets is 16%.

Actual return on plan assets is $123,400.

Contribution for the year is $67,480.

Benefit paid for the year is $47,440.

AOCI related to prior service cost at the beginning is $65,840.

Amortization of prior service cost is $15,500.

Actuarial loss is $78,625.

Average remaining service life of the employee base is 10 years.

c.

To determine

The value of closing balance for accumulated other comprehensive income.

Given information:

Fair value of plan assets at the beginning is $954,500.

Value of PBO at the beginning is $1,020,340.

Service cost is $81,500.

Settlement rate is 10%.

Expected rate on plan assets is 16%.

Actual return on plan assets is $123,400.

Contribution for the year is $67,480.

Benefit paid for the year is $47,440.

AOCI related to prior service cost at the beginning is $65,840.

Amortization of prior service cost is $15,500.

Actuarial loss is $78,625.

Average remaining service life of the employee base is 10 years.

d.

To determine

To prepare: The journal entry to record current year pension cost.

Given information:

Fair value of plan assets at the beginning is $954,500.

Value of PBO at the beginning is $1,020,340.

Service cost is $81,500.

Settlement rate is 10%.

Expected rate on plan assets is 16%.

Actual return on plan assets is $123,400.

Contribution for the year is $67,480.

Benefit paid for the year is $47,440.

AOCI related to prior service cost at the beginning is $65,840.

Amortization of prior service cost is $15,500.

Actuarial loss is $78,625.

Average remaining service life of the employee base is 10 years.

e.

To determine

The reconciliation of the closing balance in accumulated other comprehensive income.

Given information:

Fair value of plan assets at the beginning is $954,500.

Value of PBO at the beginning is $1,020,340.

Service cost is $81,500.

Settlement rate is 10%.

Expected rate on plan assets is 16%.

Actual return on plan assets is $123,400.

Contribution for the year is $67,480.

Benefit paid for the year is $47,440.

AOCI related to prior service cost at the beginning is $65,840.

Amortization of prior service cost is $15,500.

Actuarial loss is $78,625.

Average remaining service life of the employee base is 10 years.

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Answer 3

Question

Chapter 19, Problem 19.11E

a.

To determine

The value of total pension cost for the year.

Given information:

Fair value of plan assets at the beginning is $954,500.

Value of PBO at the beginning is $1,020,340.

Service cost is $81,500.

Settlement rate is 10%.

Expected rate on plan assets is 16%.

Actual return on plan assets is $123,400.

Contribution for the year is $67,480.

Benefit paid for the year is $47,440.

AOCI related to prior service cost at the beginning is $65,840.

Amortization of prior service cost is $15,500.

Actuarial loss is $78,625.

Average remaining service life of the employee base is 10 years.

b.

To determine

The value of closing balance of plan assets and PBO and indicate the funded status of the plan.

Given information:

Fair value of plan assets at the beginning is $954,500.

Value of PBO at the beginning is $1,020,340.

Service cost is $81,500.

Settlement rate is 10%.

Expected rate on plan assets is 16%.

Actual return on plan assets is $123,400.

Contribution for the year is $67,480.

Benefit paid for the year is $47,440.

AOCI related to prior service cost at the beginning is $65,840.

Amortization of prior service cost is $15,500.

Actuarial loss is $78,625.

Average remaining service life of the employee base is 10 years.

c.

To determine

The value of closing balance for accumulated other comprehensive income.

Given information:

Fair value of plan assets at the beginning is $954,500.

Value of PBO at the beginning is $1,020,340.

Service cost is $81,500.

Settlement rate is 10%.

Expected rate on plan assets is 16%.

Actual return on plan assets is $123,400.

Contribution for the year is $67,480.

Benefit paid for the year is $47,440.

AOCI related to prior service cost at the beginning is $65,840.

Amortization of prior service cost is $15,500.

Actuarial loss is $78,625.

Average remaining service life of the employee base is 10 years.

d.

To determine

To prepare: The journal entry to record current year pension cost.

Given information:

Fair value of plan assets at the beginning is $954,500.

Value of PBO at the beginning is $1,020,340.

Service cost is $81,500.

Settlement rate is 10%.

Expected rate on plan assets is 16%.

Actual return on plan assets is $123,400.

Contribution for the year is $67,480.

Benefit paid for the year is $47,440.

AOCI related to prior service cost at the beginning is $65,840.

Amortization of prior service cost is $15,500.

Actuarial loss is $78,625.

Average remaining service life of the employee base is 10 years.

e.

To determine

The reconciliation of the closing balance in accumulated other comprehensive income.

Given information:

Fair value of plan assets at the beginning is $954,500.

Value of PBO at the beginning is $1,020,340.

Service cost is $81,500.

Settlement rate is 10%.

Expected rate on plan assets is 16%.

Actual return on plan assets is $123,400.

Contribution for the year is $67,480.

Benefit paid for the year is $47,440.

AOCI related to prior service cost at the beginning is $65,840.

Amortization of prior service cost is $15,500.

Actuarial loss is $78,625.

Average remaining service life of the employee base is 10 years.

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Answer 4

Question

Chapter 19, Problem 19.11E

a.

To determine

The value of total pension cost for the year.

Given information:

Fair value of plan assets at the beginning is $954,500.

Value of PBO at the beginning is $1,020,340.

Service cost is $81,500.

Settlement rate is 10%.

Expected rate on plan assets is 16%.

Actual return on plan assets is $123,400.

Contribution for the year is $67,480.

Benefit paid for the year is $47,440.

AOCI related to prior service cost at the beginning is $65,840.

Amortization of prior service cost is $15,500.

Actuarial loss is $78,625.

Average remaining service life of the employee base is 10 years.

b.

To determine

The value of closing balance of plan assets and PBO and indicate the funded status of the plan.

Given information:

Fair value of plan assets at the beginning is $954,500.

Value of PBO at the beginning is $1,020,340.

Service cost is $81,500.

Settlement rate is 10%.

Expected rate on plan assets is 16%.

Actual return on plan assets is $123,400.

Contribution for the year is $67,480.

Benefit paid for the year is $47,440.

AOCI related to prior service cost at the beginning is $65,840.

Amortization of prior service cost is $15,500.

Actuarial loss is $78,625.

Average remaining service life of the employee base is 10 years.

c.

To determine

The value of closing balance for accumulated other comprehensive income.

Given information:

Fair value of plan assets at the beginning is $954,500.

Value of PBO at the beginning is $1,020,340.

Service cost is $81,500.

Settlement rate is 10%.

Expected rate on plan assets is 16%.

Actual return on plan assets is $123,400.

Contribution for the year is $67,480.

Benefit paid for the year is $47,440.

AOCI related to prior service cost at the beginning is $65,840.

Amortization of prior service cost is $15,500.

Actuarial loss is $78,625.

Average remaining service life of the employee base is 10 years.

d.

To determine

To prepare: The journal entry to record current year pension cost.

Given information:

Fair value of plan assets at the beginning is $954,500.

Value of PBO at the beginning is $1,020,340.

Service cost is $81,500.

Settlement rate is 10%.

Expected rate on plan assets is 16%.

Actual return on plan assets is $123,400.

Contribution for the year is $67,480.

Benefit paid for the year is $47,440.

AOCI related to prior service cost at the beginning is $65,840.

Amortization of prior service cost is $15,500.

Actuarial loss is $78,625.

Average remaining service life of the employee base is 10 years.

e.

To determine

The reconciliation of the closing balance in accumulated other comprehensive income.

Given information:

Fair value of plan assets at the beginning is $954,500.

Value of PBO at the beginning is $1,020,340.

Service cost is $81,500.

Settlement rate is 10%.

Expected rate on plan assets is 16%.

Actual return on plan assets is $123,400.

Contribution for the year is $67,480.

Benefit paid for the year is $47,440.

AOCI related to prior service cost at the beginning is $65,840.

Amortization of prior service cost is $15,500.

Actuarial loss is $78,625.

Average remaining service life of the employee base is 10 years.

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Answer 5

Chapter 19, Problem 19.11E

a.

To determine

The value of total pension cost for the year.

Given information:

Fair value of plan assets at the beginning is $954,500.

Value of PBO at the beginning is $1,020,340.

Service cost is $81,500.

Settlement rate is 10%.

Expected rate on plan assets is 16%.

Actual return on plan assets is $123,400.

Contribution for the year is $67,480.

Benefit paid for the year is $47,440.

AOCI related to prior service cost at the beginning is $65,840.

Amortization of prior service cost is $15,500.

Actuarial loss is $78,625.

Average remaining service life of the employee base is 10 years.

b.

To determine

The value of closing balance of plan assets and PBO and indicate the funded status of the plan.

Given information:

Fair value of plan assets at the beginning is $954,500.

Value of PBO at the beginning is $1,020,340.

Service cost is $81,500.

Settlement rate is 10%.

Expected rate on plan assets is 16%.

Actual return on plan assets is $123,400.

Contribution for the year is $67,480.

Benefit paid for the year is $47,440.

AOCI related to prior service cost at the beginning is $65,840.

Amortization of prior service cost is $15,500.

Actuarial loss is $78,625.

Average remaining service life of the employee base is 10 years.

c.

To determine

The value of closing balance for accumulated other comprehensive income.

Given information:

Fair value of plan assets at the beginning is $954,500.

Value of PBO at the beginning is $1,020,340.

Service cost is $81,500.

Settlement rate is 10%.

Expected rate on plan assets is 16%.

Actual return on plan assets is $123,400.

Contribution for the year is $67,480.

Benefit paid for the year is $47,440.

AOCI related to prior service cost at the beginning is $65,840.

Amortization of prior service cost is $15,500.

Actuarial loss is $78,625.

Average remaining service life of the employee base is 10 years.

d.

To determine

To prepare: The journal entry to record current year pension cost.

Given information:

Fair value of plan assets at the beginning is $954,500.

Value of PBO at the beginning is $1,020,340.

Service cost is $81,500.

Settlement rate is 10%.

Expected rate on plan assets is 16%.

Actual return on plan assets is $123,400.

Contribution for the year is $67,480.

Benefit paid for the year is $47,440.

AOCI related to prior service cost at the beginning is $65,840.

Amortization of prior service cost is $15,500.

Actuarial loss is $78,625.

Average remaining service life of the employee base is 10 years.

e.

To determine

The reconciliation of the closing balance in accumulated other comprehensive income.

Given information:

Fair value of plan assets at the beginning is $954,500.

Value of PBO at the beginning is $1,020,340.

Service cost is $81,500.

Settlement rate is 10%.

Expected rate on plan assets is 16%.

Actual return on plan assets is $123,400.

Contribution for the year is $67,480.

Benefit paid for the year is $47,440.

AOCI related to prior service cost at the beginning is $65,840.

Amortization of prior service cost is $15,500.

Actuarial loss is $78,625.

Average remaining service life of the employee base is 10 years.

Answer 6

Chapter 19, Problem 19.11E

a.

To determine

The value of total pension cost for the year.

Given information:

Fair value of plan assets at the beginning is $954,500.

Value of PBO at the beginning is $1,020,340.

Service cost is $81,500.

Settlement rate is 10%.

Expected rate on plan assets is 16%.

Actual return on plan assets is $123,400.

Contribution for the year is $67,480.

Benefit paid for the year is $47,440.

AOCI related to prior service cost at the beginning is $65,840.

Amortization of prior service cost is $15,500.

Actuarial loss is $78,625.

Average remaining service life of the employee base is 10 years.

Answer 7

Chapter 19, Problem 19.11E

a.

To determine

The value of total pension cost for the year.

Given information:

Fair value of plan assets at the beginning is $954,500.

Value of PBO at the beginning is $1,020,340.

Service cost is $81,500.

Settlement rate is 10%.

Expected rate on plan assets is 16%.

Actual return on plan assets is $123,400.

Contribution for the year is $67,480.

Benefit paid for the year is $47,440.

AOCI related to prior service cost at the beginning is $65,840.

Amortization of prior service cost is $15,500.

Actuarial loss is $78,625.

Average remaining service life of the employee base is 10 years.

Answer 8

b.

To determine

The value of closing balance of plan assets and PBO and indicate the funded status of the plan.

Given information:

Fair value of plan assets at the beginning is $954,500.

Value of PBO at the beginning is $1,020,340.

Service cost is $81,500.

Settlement rate is 10%.

Expected rate on plan assets is 16%.

Actual return on plan assets is $123,400.

Contribution for the year is $67,480.

Benefit paid for the year is $47,440.

AOCI related to prior service cost at the beginning is $65,840.

Amortization of prior service cost is $15,500.

Actuarial loss is $78,625.

Average remaining service life of the employee base is 10 years.

Answer 9

b.

To determine

The value of closing balance of plan assets and PBO and indicate the funded status of the plan.

Given information:

Fair value of plan assets at the beginning is $954,500.

Value of PBO at the beginning is $1,020,340.

Service cost is $81,500.

Settlement rate is 10%.

Expected rate on plan assets is 16%.

Actual return on plan assets is $123,400.

Contribution for the year is $67,480.

Benefit paid for the year is $47,440.

AOCI related to prior service cost at the beginning is $65,840.

Amortization of prior service cost is $15,500.

Actuarial loss is $78,625.

Average remaining service life of the employee base is 10 years.

Answer 10

c.

To determine

The value of closing balance for accumulated other comprehensive income.

Given information:

Fair value of plan assets at the beginning is $954,500.

Value of PBO at the beginning is $1,020,340.

Service cost is $81,500.

Settlement rate is 10%.

Expected rate on plan assets is 16%.

Actual return on plan assets is $123,400.

Contribution for the year is $67,480.

Benefit paid for the year is $47,440.

AOCI related to prior service cost at the beginning is $65,840.

Amortization of prior service cost is $15,500.

Actuarial loss is $78,625.

Average remaining service life of the employee base is 10 years.

Answer 11

c.

To determine

The value of closing balance for accumulated other comprehensive income.

Given information:

Fair value of plan assets at the beginning is $954,500.

Value of PBO at the beginning is $1,020,340.

Service cost is $81,500.

Settlement rate is 10%.

Expected rate on plan assets is 16%.

Actual return on plan assets is $123,400.

Contribution for the year is $67,480.

Benefit paid for the year is $47,440.

AOCI related to prior service cost at the beginning is $65,840.

Amortization of prior service cost is $15,500.

Actuarial loss is $78,625.

Average remaining service life of the employee base is 10 years.

Answer 12

d.

To determine

To prepare: The journal entry to record current year pension cost.

Given information:

Fair value of plan assets at the beginning is $954,500.

Value of PBO at the beginning is $1,020,340.

Service cost is $81,500.

Settlement rate is 10%.

Expected rate on plan assets is 16%.

Actual return on plan assets is $123,400.

Contribution for the year is $67,480.

Benefit paid for the year is $47,440.

AOCI related to prior service cost at the beginning is $65,840.

Amortization of prior service cost is $15,500.

Actuarial loss is $78,625.

Average remaining service life of the employee base is 10 years.

Answer 13

d.

To determine

To prepare: The journal entry to record current year pension cost.

Given information:

Fair value of plan assets at the beginning is $954,500.

Value of PBO at the beginning is $1,020,340.

Service cost is $81,500.

Settlement rate is 10%.

Expected rate on plan assets is 16%.

Actual return on plan assets is $123,400.

Contribution for the year is $67,480.

Benefit paid for the year is $47,440.

AOCI related to prior service cost at the beginning is $65,840.

Amortization of prior service cost is $15,500.

Actuarial loss is $78,625.

Average remaining service life of the employee base is 10 years.

Answer 14

e.

To determine

The reconciliation of the closing balance in accumulated other comprehensive income.

Given information:

Fair value of plan assets at the beginning is $954,500.

Value of PBO at the beginning is $1,020,340.

Service cost is $81,500.

Settlement rate is 10%.

Expected rate on plan assets is 16%.

Actual return on plan assets is $123,400.

Contribution for the year is $67,480.

Benefit paid for the year is $47,440.

AOCI related to prior service cost at the beginning is $65,840.

Amortization of prior service cost is $15,500.

Actuarial loss is $78,625.

Average remaining service life of the employee base is 10 years.

Answer 15

e.

To determine

The reconciliation of the closing balance in accumulated other comprehensive income.

Given information:

Fair value of plan assets at the beginning is $954,500.

Value of PBO at the beginning is $1,020,340.

Service cost is $81,500.

Settlement rate is 10%.

Expected rate on plan assets is 16%.

Actual return on plan assets is $123,400.

Contribution for the year is $67,480.

Benefit paid for the year is $47,440.

AOCI related to prior service cost at the beginning is $65,840.

Amortization of prior service cost is $15,500.

Actuarial loss is $78,625.

Average remaining service life of the employee base is 10 years.

Answer 16

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Answer 17

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Answer 18

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Answer 19

Ch. 19 - What is the allocation period used to expense...Ch. 19 - How do companies account for stock-based...Ch. 19 - Do companies with equity-based compensation plans...Ch. 19 - When accounting for employee stock options, will a...Ch. 19 - Prob. 19.5Q Ch. 19 - Prob. 19.6Q Ch. 19 - Prob. 19.7Q Ch. 19 - Prob. 19.8Q Ch. 19 - Prob. 19.9Q Ch. 19 - Prob. 19.10Q

Solution Summary: The author explains the value of total pension cost for the year ending amounts to 46,314.

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