INTERMEDIATE ACCT.-MYLAB COMBO ACCESS
3rd Edition
ISBN: 9780137391707
Author: GORDON
Publisher: PEARSON
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Chapter 19, Problem 19.17BE
a.
To determine
The value of amortization expense at the end of the year.
Given information:
Opening balance of its unamortized gain is equal to $136,000.
Opening balance of the projected benefit obligation is $1,150,000.
Opening balance of the plan asset at fair value is $1,278,000.
Average remaining service life is 20 years.
b.
To determine
The value of amortization expense at the end of the year and journal entry of it.
Given information:
Opening balance of its unamortized gain is equal to $136,000.
Opening balance of the projected benefit obligation is $1,150,000.
Opening balance of the plan asset at fair value is $1,278,000.
Average remaining service life is 20 years.
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Hijo Corp. is a publicly accountable entity that operates a defined benefit plan for its employees. Data relating to the pension plan is as follows:
Defined benefit obligation (DBO), December 31, 2019
$22,300,000
Plan assets, December 31, 2019
24,500,000
Current service costs (CSC), December 31, 2020
2,200,000
Benefits paid to retirees, December 31, 2020
1,000,000
Actual return on plan assets, December 31, 2020
800,000
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24,000,000
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Question 12 options:
a)
$572,000 loss
b)
$180,000 loss
c)
$212,000 gain
d)
$392,000 gain
Puhlman Inc. provides a defined benefit pension plan to its employees. It smooths recognition of its gains and
losses when computing its market-related value to compute expected return. Additional information follows:
December 31,
Description
20X1
20X0
? $2,500,000
2,150,000
2,100,000
PBO
АВО
$2,335,000
Fair value of plan assets
Market-related value of plan assets (smoothed
recognition)
Benefit payments made
AOCI-net actuarial (gain) loss
AOCI-prior service cost
Balance sheet pension asset (liability)
2,342,800
272,000
114,000
2,100,000
231,000
-0-
400,000
(400,000)
214,000
321,000
129,000
Service cost
Contribution
Actual return
Discount rate for PBO
9%
10%
Expected rate of return
Average remaining service life of employees
10%
10%
15 years
15 years
During 20X1, the PBO increased by $33,000 due to a decrease in the discount rate from the previous year. The
20X0 discount rate assumption was used to compute 20X1 service cost and interest cost.
Required:
1. Compute the fair value of plan…
Helv Industries sponsors a defined-benefit pension plan for its employees. As of January 1, 2020, the pension plan reported a Projected Benefit Obligation of $1,334,000 and fair value of Plan Assets of $996,000.
Helv also reports the following as of January 1, 2020:
Dr (Cr)
Net pension asset/liability
$ (338,000)
Accumulated other comprehensive income (AOCI)
Prior service cost
$ 100,000
Gains/Losses
$ -
Additionally, the following information is available for 2020:
Service cost
$ 306,000
Actual return of plan assets
$ 55,000
Amortization of prior service costs
$ 5,000
Benefits paid to retirees
$ 420,000
Contributions to the plan
$ 285,000
Discount…
Chapter 19 Solutions
INTERMEDIATE ACCT.-MYLAB COMBO ACCESS
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. 19.5QCh. 19 - Prob. 19.6QCh. 19 - Prob. 19.7QCh. 19 - Prob. 19.8QCh. 19 - Prob. 19.9QCh. 19 - Prob. 19.10Q
Ch. 19 - Prob. 19.1MCCh. 19 - Prob. 19.2MCCh. 19 - Prob. 19.3MCCh. 19 - Prob. 19.4MCCh. 19 - Prob. 19.5MCCh. 19 - Prob. 19.6MCCh. 19 - Prob. 19.7MCCh. 19 - Prob. 19.8MCCh. 19 - Prob. 19.1BECh. 19 - Prob. 19.2BECh. 19 - Prob. 19.3BECh. 19 - Prob. 19.4BECh. 19 - Prob. 19.5BECh. 19 - Prob. 19.6BECh. 19 - Employee Stock Options, Liability-Classified...Ch. 19 - Prob. 19.8BECh. 19 - Prob. 19.9BECh. 19 - Prob. 19.10BECh. 19 - Prob. 19.11BECh. 19 - Prob. 19.12BECh. 19 - Prob. 19.13BECh. 19 - Prob. 19.14BECh. 19 - Prob. 19.15BECh. 19 - Prob. 19.16BECh. 19 - Prob. 19.17BECh. 19 - Prob. 19.18BECh. 19 - Prob. 19.19BECh. 19 - Prob. 19.20BECh. 19 - Prob. 19.21BECh. 19 - Prob. 19.22BECh. 19 - Prob. 19.23BECh. 19 - Prob. 19.24BECh. 19 - Prob. 19.25BECh. 19 - Prob. 19.26BECh. 19 - Prob. 19.27BECh. 19 - Prob. 19.28BECh. 19 - Prob. 19.1ECh. 19 - Prob. 19.2ECh. 19 - Employee Stock Options. Equity-Classified Awards....Ch. 19 - Prob. 19.4ECh. 19 - Prob. 19.5ECh. 19 - Prob. 19.6ECh. 19 - Prob. 19.7ECh. 19 - Prob. 19.8ECh. 19 - Prob. 19.9ECh. 19 - Prob. 19.10ECh. 19 - Prob. 19.11ECh. 19 - Prob. 19.12ECh. 19 - Prob. 19.13ECh. 19 - Prob. 19.14ECh. 19 - Prob. 19.15ECh. 19 - Prob. 19.16ECh. 19 - Prob. 19.1PCh. 19 - Prob. 19.2PCh. 19 - Prob. 19.3PCh. 19 - Prob. 19.4PCh. 19 - Prob. 19.5PCh. 19 - Prob. 19.6PCh. 19 - Prob. 19.7PCh. 19 - Prob. 19.8PCh. 19 - Prob. 19.9PCh. 19 - Prob. 19.10PCh. 19 - Prob. 19.11PCh. 19 - Prob. 19.12PCh. 19 - Prob. 1JCCh. 19 - Prob. 2FSCCh. 19 - Prob. 1SSCCh. 19 - Prob. 2SSCCh. 19 - Basis for Conclusions Case 1: Are Employee Stock...Ch. 19 - Prob. 2BCC
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