EBK INTERMEDIATE ACCOUNTING
3rd Edition
ISBN: 9780136946465
Author: SANNELLA
Publisher: VST
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 19, Problem 19.4MC
To determine
To identify: The correct option.
Given information:
Fair value of plan assets is $5,580,000.
Accumulated benefit obligations is $3,400,000.
Projected benefit obligation is $4,930,000.
Unrecognized prior service cost is $400,000.
Unrecognized net gains are $140,000.
Expected benefit obligations of Year 8 is $250,000.
Company’s effective tax rate is 40%.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The following data relate to Voltaire Company's defined benefit pension plan:
($ in millions)
Plan assets at fair value, January 1
Expected return on plan assets
Actual return on plan assets
Contributions to the pension fund (end of year)
Amortization of net loss
Pension benefits paid (end of year)
Pension expense
$600
60
48
100
10
11
72
Required:
Determine the amount of pension plan assets at fair value on December 31.
Rosaria Co. sponsors a defined benefit pension plan. For the current year ended December 31, thefollowing information relevant to the plan has been accumulated:Defined benefit obligation, 1/1 P11,250,000Fair value of plan assets, 1/1 10,500,000Current service cost 1,050,000Past service cost 2,200,000Actual return on plan assets 600,000Decrease in defined benefit obligation due tochanges in actuarial assumptions300,000Discount rate 8%Requirements:1. In the working papers computations, what balance of plan assets will be determined?2. In the working papers computations, what balance of benefit obligation will be determined?3. Calculate the amount that the entity would recognize in profit or loss for the year in accordancewith the revised PAS 19.4. Calculate the amount that the entity would recognize in other comprehensive income for theyear in accordance with the revised PAS 19.
Fajardo Company provided the following pension plan information:
Projected benefit obligation – January 1, 2021
3,500,000
Fair value of plan assets – January 1, 2021
2,800,000
Pension benefits paid during the year
250,000
Current service cost for 2021
1,750,000
Past service cost for 2021
425,000
Actual return on plan assets
180,000
Contribution to the plan
1,500,000
Actuarial loss due to change in assumption on PBO
200,000
Discount or settlement rate
10%
What is the employee benefit expense for the current year?
Group of answer choices
2,245,000
1,750,000
2,525,000
1,905,000
Chapter 19 Solutions
EBK INTERMEDIATE ACCOUNTING
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
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- 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.arrow_forwardFajardo Company provided the following pension plan information: Projected benefit obligation – January 1, 2021 3,500,000 Fair value of plan assets – January 1, 2021 2,800,000 Pension benefits paid during the year 250,000 Current service cost for 2021 1,750,000 Past service cost for 2021 425,000 Actual return on plan assets 180,000 Contribution to the plan 1,500,000 Actuarial loss due to change in assumption on PBO 200,000 Discount or settlement rate 10% What is the net remeasurement loss for the current year? Group of answer choices 100,000 300,000 400,000 200,000arrow_forwardSunshine company has a defined benefit pension plan. Using the data available related to pension, calculate the amount of amortization of the net loss or gain that should be included as a component of pension expense for the current year? Average remaining service period of active employees Net gain, January 1 PBO, January 1 Plan assets, January 1 12 years $214,600 $1,630,000 $1,930,000 a. $21,600 b. $1,800 c. $51,600 d. $4,300arrow_forward
- The following information relates to Black Corporation's defined benefit pension plan during the current reporting year: Plan assets at fair value, January 1 Expected return on plan assets Actual return on plan assets Contributions to the pension fund (end of year) $640,000,000 54,000,000 44,000,000 94,000,000 Amortization of net loss Pension benefits paid (end of year) Pension expense 36,000,000 64,000,000 Required: Determine the balance of pension plan assets at fair value on December 31. (Enter your answers in millions. Amounts to be deducted should be indicated with a minus sign.) Pension Plan ($ in millions) Plan assets beginning of the year Plan assets end of the yeararrow_forwardThe following information relates to Schmidt Sausage Company's defined benefit pension plan during the current reporting year: Plan assets beginning of the year Expected return on plan assets Actual return on plan assets Cash contributions Amortization of net loss Retiree benefits ($ in millions) Pension plan assets of the year $ 580 58 49 78 9 10 Required: Determine the amount of pension plan assets at fair value on December 31. Note: Enter your answers in millions.arrow_forwardCey Company has a defined benefit pension plan. Cey's policy is to fund net periodic pension cost annually, payment to an independent trustee being made 2 months after the end of each year. Data relating to the pension plan for year 5 are as follows: Net pension cost for year 5 Unrecognized prior service cost, 12/31/Y5 Accumulated benefit obligation, 12/31/Y5 Fair value of plan assets, 12/31/Y5 Projected benefit obligation 12/31/Y5 How much should appear on Cey's balance sheet at December 31, year 5, for pension liability? Current $190,000 $190,000 $0 Noncurrent $150,000 $330,000 $0 $190,000 150,000 480,000 500,000 500,000 $480,000arrow_forward
- The following information regarding Buffalo Ltd.’s defined benefit pension plan was taken from the company’s records for 2020: Defined Benefit Obligation, January 1 $9,941,000 Actual return on plan assets 434,000 Benefits paid to retirees 848,000 Current year service cost 1,210,000 Interest cost 496,000 Employer contributions for the year 998,000 Pension Plan Assets, January 1 8,832,000 Prepare a continuity schedule for the DBO for 2020. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)arrow_forwardA company has a noncontributory, defined benefit pension plan. At December 31 of the current year, the company received the following information: Projected Benefit Obligation ($ in millions) Balance, January 1 $ 130 Service cost 23 Interest cost 13 Benefits paid (12) Balance, December 31 $ 154 Plan Assets Balance, January 1 $ 70 Actual return on plan assets 9 Contributions current year 23 Benefits paid (12) Balance, December 31 $ 90 The expected long-term rate of return on plan assets was 10%. There was no prior service cost and a negligible net loss—AOCI on January 1 of the current year. Required: Determine the company’s pension expense for the current year. Prepare the journal entries to record the company’s (a) pension expense, (b) funding, and (c) payment for the current year. Please don't give answer & formulae in image based format.. thankuarrow_forwardThe following information relates to the defined benefit pension plan for the McDonald Company for the year ending December31, 2019. Present value of defined benefit obligation, Jan. 1 4,600,000 Present value of defined benefit obligation, Dec. 31 4,729,000 Fair value of plan assets, January 1 5,035,000 Fair value of plan assets, December 31 5,565,000 Expected return on plan assets 450,000 Amortization of deferred gain 32,500 Employer contributions 425,000 Benefits paid to retirees 390,000 Discount rate 10% The return on plan assets for the year is a. 105,000 b. 495,000 c. 503,500 d. 530,000arrow_forward
- - The following information relates to the defined benefit pension plan of the McDonald Company for the year ending December 31, 2002: Present value of defined benefit obligation, Jan. 1 4,600,000 Present value of defined benefit obligation, Dec. 31 Fair value of plan assets, January 1 Fair value of plan assets, December 31 Expected return on plan assets Amortization of deferred gain Employer contributions Benefits paid to retirees 4,729,000 5,035,000 5,565,000 450,000 32,500 425,000 390,000 Discount rate 10% The return on plan assets for the year is a. 105,000. (Adapted) d. 530,000. b. 495,000. c. 503,500.arrow_forwardOriole Company has available the following information about its defined-benefit pension plan for the year ending December 31, 2021: Service cost for 2021 $ 25,500 Accumulated benefit obligation 688,000 Plan assets at fair value 635,000 Accumulated OCI (PSC) 305,000 Vested benefit obligation 510,000 Market-related asset value 730,000 Projected benefit obligation 865,000 Accumulated OCI net gain 92,500 Interest on projected benefit obligation 69,000 (a) Calculate the pension asset/liability to be recorded at December 31, 2021. a. Pension (Asset or Liability) $ b. Calculate the amortization of the net gain. The average remaining service life of employees is 10 yearsarrow_forwardMarigold Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2021, the following balances related to this plan. Plan assets (market-related value) $269.400 Projected benefit obligation 334.400 Pension asset/liability 65,000 Cr. Prior service cost 89,600 OCI-Loss 39,700 As a result of the operation of the plan during 2021, the actuary provided the following additional data for 2021. Service cost $44,500 Actual return on plan assets 26,900 Amortization of prior service cost 12,000 Contributions 64,400 Benefits paid retirees 41,400 Settlement rate 7 % Expected return on plan assets 8 % Average remaining service life of active employees 10 years Indicate the pension amounts reported in the financial statements. Marigold Corp. Income Statement (Partial) Marigold Corp. Comprehensive Income Statement $XXXX $XXXX Marigold Corp. Partial Balance Sheet $ 2$arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning