The correct option. Given information: Projected benefit obligation as on December 31, Year 7 is $2,000,000. Fair value of Plan Assets as on December 31, Year 7 is $1,750,000.

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Chapter 19, Problem 19.8MC

To determine

To identify: The correct option.

Given information:

Projected benefit obligation as on December 31, Year 7 is $2,000,000.

Fair value of Plan Assets as on December 31, Year 7 is $1,750,000.

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Carichem Company produces sanitation products after processing specialized chemicals. The following relates to its activities:  1 Kilogram of chemicals purchased for $4000 and with an additional $2000 is processed into 400 grams of Crystals and 80 litres of a Cleaning agent. At split-off, a gram of Crystal can be sold for $2 and the Cleaning agent can be sold for $8 per litre.  At an additional cost of $800, Carichem can process the 400 grams of Crystal into 500 grams of Detergent that can be sold for $4 per gram. The 80 litres of Cleaning agent is packaged at an additional cost of $600 and made into 200 packs of Softener that can be sold for $4 per pack. Required: 1. Allocate the joint cost to the Detergent and the Softener using the following: a. Sales value at split-off method b. NRV method 2. Should Carichem have processed each of the products further? What effect does the allocation method have on this decision?

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Answer 2

Question

Chapter 19, Problem 19.8MC

To determine

To identify: The correct option.

Given information:

Projected benefit obligation as on December 31, Year 7 is $2,000,000.

Fair value of Plan Assets as on December 31, Year 7 is $1,750,000.

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Answer 3

Question

Chapter 19, Problem 19.8MC

To determine

To identify: The correct option.

Given information:

Projected benefit obligation as on December 31, Year 7 is $2,000,000.

Fair value of Plan Assets as on December 31, Year 7 is $1,750,000.

Expert Solution & Answer

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Answer 4

Question

Chapter 19, Problem 19.8MC

To determine

To identify: The correct option.

Given information:

Projected benefit obligation as on December 31, Year 7 is $2,000,000.

Fair value of Plan Assets as on December 31, Year 7 is $1,750,000.

Expert Solution & Answer

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Answer 5

Chapter 19, Problem 19.8MC

To determine

To identify: The correct option.

Given information:

Projected benefit obligation as on December 31, Year 7 is $2,000,000.

Fair value of Plan Assets as on December 31, Year 7 is $1,750,000.

Answer 6

Chapter 19, Problem 19.8MC

To determine

To identify: The correct option.

Given information:

Projected benefit obligation as on December 31, Year 7 is $2,000,000.

Fair value of Plan Assets as on December 31, Year 7 is $1,750,000.

Answer 7

Chapter 19, Problem 19.8MC

To determine

To identify: The correct option.

Given information:

Projected benefit obligation as on December 31, Year 7 is $2,000,000.

Fair value of Plan Assets as on December 31, Year 7 is $1,750,000.

Answer 8

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Answer 9

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Answer 11

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

The correct option. Given information: Projected benefit obligation as on December 31, Year 7 is $2,000,000. Fair value of Plan Assets as on December 31, Year 7 is $1,750,000.

Solution Summary: The author explains that the correct option is c. The difference between the projected benefited obligation and the pension plan asset account is termed the funded status of the Defined Benefit Plan.

Concept explainers

To identify: The correct option.

Given information:

Projected benefit obligation as on December 31, Year 7 is $2,000,000.

Fair value of Plan Assets as on December 31, Year 7 is $1,750,000.

Want to see the full answer?

Chapter 19 Solutions

The correct option. Given information: Projected benefit obligation as on December 31, Year 7 is $2,000,000. Fair value of Plan Assets as on December 31, Year 7 is $1,750,000.

Solution Summary: The author explains that the correct option is c. The difference between the projected benefited obligation and the pension plan asset account is termed the funded status of the Defined Benefit Plan.

Concept explainers

To identify: The correct option. Given information: Projected benefit obligation as on December 31, Year 7 is $2,000,000. Fair value of Plan Assets as on December 31, Year 7 is $1,750,000.

Want to see the full answer?

Chapter 19 Solutions

To identify: The correct option.

Given information:

Projected benefit obligation as on December 31, Year 7 is $2,000,000.

Fair value of Plan Assets as on December 31, Year 7 is $1,750,000.