Concept explainers
a.
The value of total pension cost for the year.
Given information:
Fair value of plan assets at the beginning is $8,010.
Value of PBO at the beginning is $9,133.
Service cost is $1,827.
Settlement rate is 8%.
Expected rate on plan assets is 4%.
Actual return on plan assets is $570.
Contribution for the year is $1,060.
Benefit paid for the year is $900.
AOCI related to prior service cost at the beginning is $2,020.
Amortization of prior service cost is $670.
Actuarial gain is $3,012.
Average remaining service life of the employee base is 5 years
b.
The value of closing balance of plan assets and PBO.
Given information:
Fair value of plan assets at the beginning is $8,010.
Value of PBO at the beginning is $9,133.
Service cost is $1,827.
Settlement rate is 8%.
Expected rate on plan assets is 4%.
Actual return on plan assets is $570.
Contribution for the year is $1,060.
Benefit paid for the year is $900.
AOCI related to prior service cost at the beginning is $2,020.
Amortization of prior service cost is $670.
Actuarial gain is $3,012.
Average remaining service life of the employee base is 5 years
c.
The value of the closing balance in accumulated other comprehensive income of current year.
d.
To prepare: The

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Chapter 19 Solutions
Intermediate Accounting
- KD Industries has 30 million shares outstanding with a market price of $20 per share and no debt. KD has had consistently stable earnings and pays a 35% tax rate. Management plans to borrow $200 million on a permanent basis through a leveraged recapitalization in which they would use the borrowed funds to repurchase outstanding shares. The present value of KD's interest tax shield is closest to a. $130 million b. $200 million c. $400 million d. $70 millionarrow_forwardCorrect answer please general accountingarrow_forwardTargeted pre tax income?arrow_forward
- Please provide the correct answer to this financial accounting problem using accurate calculations.arrow_forwardIf a country can give up one unit of future consumption and as result increase its current consumption by 0.94 units, its real rate of interest must be: (a) 1.4% (b) 3.4% (c) 6.4% (d) 9.4%arrow_forwardWhat is the total contribution margin??arrow_forward
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
