INTERM.ACCT.:REPORTING...-CENGAGENOWV2
3rd Edition
ISBN: 9781337909358
Author: WAHLEN
Publisher: CENGAGE L
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Chapter 19, Problem 9MC
To determine
Calculate the amount of amortized prior service cost of Company M for 2019 under
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Blossom Company has five employees participating in its defined benefit pension plan. Expected years of future service for these
employees at the beginning of 2025 are as follows.
Employee Future Years of Service
Daniel
3
Mark
4
Nancy
5
Kenneth
Betty
6
6
On January 1, 2025, the company amended its pension plan, increasing its projected benefit obligation by $80,640.
Compute the amount of prior service cost amortization for the years 2025 through 2030 using the years-of-service method, setting up
appropriate schedules.
Year
Annual Amortization
2025
$
2026
2027
2028
2029
2025
Sheridan Corporation has a defined-benefit pension plan covering its 1140 employees. Sheridan agrees to amend its pension benefits.
The prior service cost associated with the amendment is $570000. The employees are grouped according to expected years of
retirement, as follows:
Number of
Expected Retirement
Group
Employees
on December 31
A
210
2025
B
325
2026
C
450
2027
D
155
2028
What is the overall total number of service years to use for amortization calculations using the years of service approach?
4560
680
2830
○ 1140
The following information pertains to a defined benefit pension plan that Arora Inc. sponsors in 2020.
PBO balance, January 1, 2020
$160,000
Service cost
19,000
Interest cost
11,200
Prior service cost adjustment based on past service, January 1, 2020
30,000
Amortization of prior service cost
3,000
Actuarial gain on PBO
6,000
Benefits paid to retirees
2,500
Contributions to plan
18,000
What is the PBO balance on December 31, 2020?
Select one:
a. $228,700
b. $216,700
c. $211,700
d. $193,700
Chapter 19 Solutions
INTERM.ACCT.:REPORTING...-CENGAGENOWV2
Ch. 19 - Prob. 1GICh. 19 - Prob. 2GICh. 19 - Prob. 3GICh. 19 - Prob. 4GICh. 19 - Prob. 5GICh. 19 - Prob. 6GICh. 19 - Prob. 7GICh. 19 - Prob. 8GICh. 19 - Prob. 9GICh. 19 - Prob. 10GI
Ch. 19 - Prob. 11GICh. 19 - Prob. 12GICh. 19 - Prob. 13GICh. 19 - Prob. 14GICh. 19 - Prob. 15GICh. 19 - Prob. 16GICh. 19 - Prob. 17GICh. 19 - Prob. 18GICh. 19 - Prob. 19GICh. 19 - Prob. 20GICh. 19 - Prob. 21GICh. 19 - Prob. 22GICh. 19 - Prob. 23GICh. 19 - The actuarial present value of all the benefits...Ch. 19 - Prob. 2MCCh. 19 - Prob. 3MCCh. 19 - Prob. 4MCCh. 19 - Prob. 5MCCh. 19 - Prob. 6MCCh. 19 - Which of the following is not a component of...Ch. 19 - Prob. 8MCCh. 19 - Prob. 9MCCh. 19 - Prob. 10MCCh. 19 - Prob. 1RECh. 19 - Prob. 2RECh. 19 - Pinecone Company has plan assets of 500,000 at the...Ch. 19 - Prob. 4RECh. 19 - Prob. 5RECh. 19 - Prob. 6RECh. 19 - Prob. 7RECh. 19 - Prob. 8RECh. 19 - Given the following information for Tyler Companys...Ch. 19 - At the beginning of Year 1, Cactus Company has...Ch. 19 - Prob. 11RECh. 19 - Prob. 1ECh. 19 - Prob. 2ECh. 19 - Prob. 3ECh. 19 - Prob. 4ECh. 19 - Prob. 5ECh. 19 - Prob. 6ECh. 19 - Prob. 7ECh. 19 - Prob. 8ECh. 19 - Prob. 9ECh. 19 - Prob. 10ECh. 19 - Prob. 11ECh. 19 - Prob. 12ECh. 19 - Prob. 13ECh. 19 - Refer to the information provided in E19-13....Ch. 19 - Prob. 15ECh. 19 - Prob. 16ECh. 19 - Prob. 1PCh. 19 - Prob. 2PCh. 19 - Prob. 3PCh. 19 - Prob. 4PCh. 19 - Prob. 5PCh. 19 - Prob. 6PCh. 19 - Prob. 7PCh. 19 - Prob. 8PCh. 19 - Prob. 9PCh. 19 - Prob. 10PCh. 19 - Prob. 11PCh. 19 - Prob. 12PCh. 19 - Prob. 1CCh. 19 - Prob. 2CCh. 19 - Prob. 3CCh. 19 - Prob. 4CCh. 19 - Prob. 5CCh. 19 - Prob. 6CCh. 19 - Prob. 7CCh. 19 - Prob. 9C
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