Question

A headline in the Wall Street Journal stated, “Firms
Increasingly Tap Their Pension Funds to Use Excess
Assets.” What is the accounting issue related to the use of
these “excess assets” through plan terminations?

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: During its first year of operations, the McCollum Corporation entered into the following transaction...

A: Journal entry for issue of shares:

Q: Napco Refining Company processes gasoline. On June 1 of the current year, 6,400 units were 3⁄5 compl...

A: Click to see the answer

Q: Explain the accounting for sales with right of return.

A: Click to see the answer

Q: Lighthouse Paper Company manufactures newsprint. The product is manufactured in two departments, Pap...

A: A (1)Prepare journal entries: 

Q: What is the proper accounting for volume discounts onsales of products?

A: Volume discounts: It is an incentive to encourage for an increase in business. The seller issue disc...

Q: On January 1, a company purchased 3%, 20-year corporate bonds for $69,033,776 as an investment. The ...

A: Click to see the answer

Q: What are the two methods of amortizing discount andpremium on bonds payable? Explain each.

A: Click to see the answer

Q: Bronson Industries reported a deferred tax liability of $8 million for the year ended December 31, 2...

A: Temporary DifferenceTemporary difference refers to the difference of one income recognized by the ta...

Q: What are the general rules for measuring gain or loss byboth creditor and debtor in a troubled-debt ...

A: Rules for measuring gain or loss by creditor in a troubled-debt restructuring involving a settlement...

Q: Williams-Santana Inc. is a manufacturer of high-tech industrial parts that was started in 2002 by tw...

A: Accounting changes:Accounting changes are the alterations made to the accounting methods, accounting...

Q: Vulcan Company is a monthly depositor whose tax liability for March 20-- is $3,200. 1.  What is the ...

A: 1.The due date for the deposit of the taxes is April 15.

Q: GAAP requires that debt issue costs be recorded separately and amortized over the term of the relate...

A: Click to see the answer

Q: Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org). Determine the ...

A: Specific citation for accounting treatment For every accounting items, there is a specific citation ...

Q: Discuss why options and warrants may be consideredpotentially dilutive common shares for the computa...

A: For reporting the needs of investors in a few corporations, the concept of a security being equal to...

Q: Insurance in the amount of $60,000 was  purchase annually and paid for up front on April 1st. a) Wha...

A: Prepare the journal entry to record the payment of insurance in advance.

Q: A company issued 6%, 15-year bonds with a face amount of $75 million. The market yield for bonds of ...

A: Click to see the answer

Q: The way a debtor accounts for the restructuring depends on the extent of the reduction in cash payme...

A: Trouble debt restructuring: When the unique terms of a debt agreement is encouraged by the financial...

Q: Lewelling Company issued 100,000 shares of its $1 par common stock to the Michael Morgan law firm as...

A: Click to see the answer

Q: Distinguish between not-for-profit and for-profit corporations.

A: Corporation: A business concern where there is a separate legal entity, and are owned by shareholder...

Q: IFRS and U.S. GAAP follow similar approaches for accounting for taxation. Nevertheless, differences ...

A: Deferred TaxDeferred tax account shows the amount of reconciliation, which occurs due to the differe...

Q: Define the following terms.(a) Basic earnings per share.(b) Potentially dilutive security.(c) Dilute...

A: Earnings per cash:  The amount available as earnings for each of the common shares outstanding for a...

Q: Relevant and irrelevant costs. Answer the following questions. Robinson Computers makes 5,700 units...

A: Click to see the answer

Q: During 2016, its first year of operations, Baginski Steel Corporation reported a net operating loss ...

A: Net Operating Loss Carryforward The net operating loss is considered as negative taxable income. Whe...

Q: Relevant costs, contribution margin, product emphasis. The Beach Comber is a take-out food store at ...

A: Click to see the answer

Q: Companies can choose from different costing methods: process/product costing and activity-based cost...

A: Activity based costing: It is a method for allocating overhead cost to products based on consumption...

Q: Describe the critical factor in evaluating whether a performanceobligation is satisfied.

A: Performance Obligation: Performance obligation means a promise to transfer goods or services.

Q: What are some examples of variable consideration? What arethe two approaches for estimating variable...

A: Variable consideration: It is an amount which is included in the contract as consideration. An organ...

Q: The meaning of the term “fund” depends on the contextin which it is used. Explain its meaning when u...

A: If the fund is a noun: Fund is termed as the contribution of money or an account created by the empl...

Q: This discussion is derived from the "Analysis for Decision Making" ADM Section at the end of Chapter...

A: Financial Statements shows the financial position of a firm on a specified date. The users of financ...

Q: When bonds are issued at a premium the debt declines each period. Explain.

A: Click to see the answer

Q: Both convertible bonds and bonds issued with detachable warrants have features of both debt and equi...

A: Click to see the answer

Q: What is comprehensive income? How does comprehensive income differ from net income? Where do compani...

A: Comprehensive income:Comprehensive income represents the amount of net income plus other comprehensi...

Q: At January 1, 2016, Brant Cargo acquired equipment by issuing a five-year, $150,000 (payable at matu...

A: 1.

Q: In 2016, Borland Semiconductors entered into the transactions described below. In 2013, Borland had ...

A: Click to see the answer

Q: Hayim Accardi is the accounting manager for a small, local firm that has full- and part-time staff. ...

A: The full form of FLSA is Fair Labor Standards Act. This act states that an employee shall:At least r...

Q: Identify and briefly describe the two primary sources of shareholders’ equity.

A: Shareholders’ equity: Shareholders’ equity refers to the right the owner possesses over the resource...

Q: A company issued 5%, 20-year bonds with a face amount of $80 million. The market yield for bonds of ...

A: Calculate the selling price of the bonds as shown below: 

Q: How does an “asset gain or loss” develop in pensionaccounting? How does a “liability gain or loss” d...

A: Plan assets: Assets which are created, maintained and planned for a specific purpose or benefit is t...

Q: What is a performance obligation? Under what conditionsdoes a performance obligation exist?

A: Click to see the answer

Q: Samson Wholesale Beverage Company regularly factors its accounts receivable with the Milpitas Financ...

A: Determine cash received.

Q: Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made ...

A: 1) Prepare the journal entry to record the issuance of the notes as on 1st January 2016 as shown bel...

Q: Explain the reporting for (a) costs to fulfill a contract and(b) collectibility.

A: (a)Explain how costs on contracts are reported. Fulfillment costs are divided into two categories:(1...

Q: VeriFone Systems is a provider of electronic card payment terminals, peripherals, network products, ...

A: A reserve that is used to setoff the amount of deferred tax asset is known as valuation allowance. W...

Q: What information is contained in a bond indenture? What purpose does it serve?

A: Click to see the answer

Q: At the end of 2015, Payne Industries had a deferred tax asset account with a balance of $30 million ...

A: Valuation Allowance:  Valuation allowance is that financial item that offsets the deferred tax asset...

Q: On January 1, 2016, Brandon Electronics issued $85 million of 11.5% bonds, dated January 1. The mark...

A: Click to see the answer

Q: The following information concerns production in the Forging Department for June. The Forging Depart...

A: The equivalents units of production of 4,020 units is calculated by adding the units of goods transf...

Q: On January 31, 2016, Beau Corp. issued $300,000 maturity value, 12% bonds for $300,000 cash. The bon...

A: Given:Bond face value = 300,000Interest rate  = 12%

Q: Black Diamond Inc. issues 2,500 shares of $1 par valuecommon stock and 1,000 shares of $50 par value...

A: a. Prepare journal entries for issuance of common shares and preferred shares when market value of s...

Q: Accounting for uncertainty in tax positions is prescribed by GAAP in FASB ASC 740–10: Income Taxes– ...

A: GAAP:GAAP stands for “Generally Accepted Accounting Principles”. It provides the accounting rules an...