South-Western Federal Taxation 2019: Individual Income Taxes (Intuit ProConnect Tax Online 2017 & RIA Checkpoint 1 term (6 months) Printed Access Card)
42nd Edition
ISBN: 9781337702546
Author: James C. Young, William H. Hoffman, William A. Raabe, David M. Maloney, Annette Nellen
Publisher: Cengage Learning
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Chapter 19, Problem 30P
To determine
Compute the non-forfeitable percentage for each of the participants depending upon the years of service completed.
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Generally, if the owner of an IRA dies after December 31, 2019, and before beginning required minimum distributions, a non-designated beneficiary must:
Begin to take the required minimum distributions when the beneficiary turns 70½.
Take the entire amount in lump-sum in the year after the year of death.
Take the entire amount of the account balance within five years after the year of death.
Take the entire amount of the account balance within ten years after the year of death.
Lender Company provides postretirement health care benefits to employees who provide at least 10 years of service and
reach the age of 65 while in service. On January 1 of the current calendar year, the following plan-related data were
available.
APBO balance
Fair value of plan assets
Average remaining service period to retirement
Average remaining service period to full eligibility
Postretirement Benefit Expense
Service cost
Interest cost
Return on plan assets
Amortization of prior service cost
Postretirement benefit expense
On January 1 of the current year, Lender amends the plan to provide dental benefits. The actuary determines that the cost of
making the amendment increases the APBO by $11,000,000. Management chooses to amortize this amount on a straight-
line basis. The service cost is $31,000,000. The appropriate interest rate is 10%.
($ in millions)
Required:
Calculate the postretirement benefit expense for the current year.
Note: Enter your answers in millions rounded to 2…
A pension plan paid out benefits amounting to $343,200 during the year to retired plan members. The entry reflected in a pension fund work sheet should show
Select one:
a.
DEBIT-Plan Assets; CREDIT-Cash.
b.
DEBIT-Plan Expenses; CREDIT-Cash.
c.
DEBIT-Plan Expenses; CREDIT-Plan Assets.
d.
DEBIT-Defined Benefit Obligation; CREDIT-Cash.
e.
None of the above.
Chapter 19 Solutions
South-Western Federal Taxation 2019: Individual Income Taxes (Intuit ProConnect Tax Online 2017 & RIA Checkpoint 1 term (6 months) Printed Access Card)
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