Bostonian Company provided the following information related to its defined benefit pension plan for 20X1: PBO on 1/1 Fair value of plan assets on 1/1 Service cost Actual return on plan assets Payments made to retirees on 12/31 Amortization of prior service cost Recognized actuarial losses. Contributions made to plan at 12/31 Interest rate for discounting pension obligations Expected return on plan assets 1. 2. 3. Pension expense Fair value of plan assets OCI Required: 1. What amount of pension expense should Bostonian report for 20X1? 2. What is the fair value of plan assets at December 31, 20X1? 3. What amount was recognized in OCI in 20X1? Be sure to indicate whether OCI amount represented a loss or a (gain). Amount $ 200,000 $ 2,300,000 $2,500,000 2,000,000 Gain 120,000 320,000 100,000 40,000 50,000 80,000 6% 8%

Bostonian Company provided the following information related to its defined benefit pension plan for 20X1: PBO on 1/1 Fair value of plan assets on 1/1 Service cost Actual return on plan assets Payments made to retirees on 12/31 Amortization of prior service cost Recognized actuarial losses. Contributions made to plan at 12/31 Interest rate for discounting pension obligations Expected return on plan assets 1. 2. 3. Pension expense Fair value of plan assets OCI Required: 1. What amount of pension expense should Bostonian report for 20X1? 2. What is the fair value of plan assets at December 31, 20X1? 3. What amount was recognized in OCI in 20X1? Be sure to indicate whether OCI amount represented a loss or a (gain). Amount $ 200,000 $ 2,300,000 $2,500,000 2,000,000 Gain 120,000 320,000 100,000 40,000 50,000 80,000 6% 8%

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 7E

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Bostonian Company provided the following information related to its defined benefit pension plan for 20X1: PBO on 1/1 $ 2,500,000 Fair value of plan assets on 1/1 2,000,000 Service cost 120,000 Actual return on plan assets 320,000 Payments made to retirees on 12/31 100,000 Amortization of prior service cost 40,000 Recognized actuarial losses 50,000 Contributions made to plan at 12/31 80,000 Interest rate for discounting pension obligations 6 % Expected return on plan assets 8 % Required: What amount was recognized in OCI in 20X1? Be sure to indicate whether OCI amount represented a loss or a (gain).
Bostonian Company provided the following information related to its defined benefit pension plan for 20X1: PBO on 1/1 $ 2,500,000 Fair value of plan assets on 1/1 2,000,000 Service cost 120,000 Actual return on plan assets 320,000 Payments made to retirees on 12/31 100,000 Amortization of prior service cost 40,000 Recognized actuarial losses 50,000 Contributions made to plan at 12/31 80,000 Interest rate for discounting pension obligations 6 % Expected return on plan assets 8 % What amount of pension expense should Bostonian report for 20X1? What is the fair value of plan assets at December 31, 20X1? What amount was recognized in OCI in 20X1? Be sure to indicate whether OCI amount represented a loss or a (gain).
Vaughn Enterprises provides the following information relative to its defined benefit pension plan. Balances or Values at December 31, 2020Projected benefit obligation $2,726,600Accumulated benefit obligation 1,982,100Fair value of plan assets 2,293,300Accumulated OCI (PSC) 208,700Accumulated OCI—Net loss (1/1/20 balance, 0) 45,700Pension liability 433,300Other pension plan data for 2020: Service cost $94,700Prior service cost amortization 42,100Actual return on plan assets 129,100Expected return on plan assets 174,800Interest on January 1, 2020, projected benefit obligation 252,800Contributions to plan 93,100Benefits paid 138,800 Collapse question part(a)Prepare the note disclosing the components of pension expense for the year 2020. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).) Components of Pension ExpenseService Cost$94700Interest Cost252800Expected Return on Plan Assets(174800)Prior Service Cost…
Vaughn Enterprises provides the following information relative to its defined benefit pension plan. Balances or Values at December 31, 2020Projected benefit obligation $2,726,600Accumulated benefit obligation 1,982,100Fair value of plan assets 2,293,300Accumulated OCI (PSC) 208,700Accumulated OCI—Net loss (1/1/20 balance, 0) 45,700Pension liability 433,300Other pension plan data for 2020: Service cost $94,700Prior service cost amortization 42,100Actual return on plan assets 129,100Expected return on plan assets 174,800Interest on January 1, 2020, projected benefit obligation 252,800Contributions to plan 93,100Benefits paid 138,800 Collapse question part(a) Prepare the note disclosing the components of pension expense for the year 2020. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).) Components of Pension ExpenseService Cost$94700Interest Cost252800Expected Return on Plan Assets(174800)Prior Service Cost…
The following information is related to the defined-benefit pension plan of a company for 2021. Amortization of OCI-gain $87,700 Amortization of OCI-prior service cost 151,000Contributions to the plan 235,000Interest on projected benefit obligation 363,000Service cost 550,890Expected return on plan assets 258,000Actual return on plan assets is the sameas expected return 258,000Benefits distributed 148,000 Pension expense for 2021 is $__________.
Th e relationship between the periodic pension cost and the plan’s funded status is bestexpressed in which of the following?A . Periodic pension cost of –£483 = Ending funded status of –£4,774 – Employer contributions of £693 – Beginning funded status of –£4,984.B . Periodic pension cost of £1,322 = Benefi ts paid of £1,322.C . Periodic pension cost of £210 = Ending funded status of –£4,774 – Beginning fundedstatus of –£4,984
The balance sheet below represents the pension plan of Myers IncorporationASSETS: ( in millions)Pension fund 720Future normal costs 600Unarmortized supplemental liabilities 100Losses from changes in actuarial assumptions. 150TOTAL ASSETS: 1660LIABILITIES: (in millions)Vested accrued benefits. 540Unvested accrued benefits. 220Expected future service costs 900EXPECTED BENEFITS: 1660Required:a). Explain the meaning of each of the terms highlighted in the balance sheet aboveb). Calculate:i). Unfunded vested accrued benefitsii). Unfunded accrued benefitsC). Suppose normal costs do not change, show how the balance sheet would change if:i). The value of securities in the pension fund falls by $50 millionii). The union negotiation increased pension worth $80 million
Use the following information for questions 4 through 6. The following data are for the pension plan for the employees of Lockett Company. 1/1/1412/31/1412/31/15 Accumulated benefit obligation $2,500,000 $2,600,000 $3,400,000 Projected benefit obligation 2,700,000 2,800,000 3,700,000 Plan assets (at fair value) 2,300,000 3,000,000 3,300,000 AOCL – net loss -0- 580,000 500,000 Settlement rate (for year) 10% 9% Expected rate of return (for year) 8% 7% Lockett’s contribution was $420,000 in 2015 and benefits paid were $275,000. Lockett estimates that the average remaining service life is 20 years. 4.The actual return on plan assets in 2015 was a. $300,000. b. $255,000. c. $200,000. d. $155,000. 5.Assume that the actual return on plan assets in 2015 was $245,000. The unexpected gain on plan assets in 2015 was a. $32,000. b. $55,000. c. $35,000. d. $34,000. 6.The corridor for 2015 was $300,000. The amount of AOCI-net loss amortized in 2015 was a. $33,333. b. $32,000. c. $14,000.…
Pension data for Sterling Properties include the following: ($ in thousands)Service cost, 2021 $112Projected benefit obligation, January 1, 2021 850Plan assets (fair value), January 1, 2021 900Prior service cost—AOCI (2021 amortization, $8) 80Net loss—AOCI (2021 amortization, $1) 101Interest rate, 6%Expected return on plan assets, 10%Actual return on plan assets, 11% Required:Determine pension expense for 2021.
What was the dollar amount of loss (gain) on plan assets that was recognized in OCI during 20X1? Prepare the journal entries to record pension expense, the contribution, and the OCI effects.
Presented below is information related to Sandhill Inc. pension plan for 2021. Service cost $ 1160000 Actual return on plan assets 248000 Interest on projected benefit obligation 480000 Amortization of net loss 100000 Amortization of prior service cost due to increase in benefits 200000 Expected return on plan assets 220000 What amount should be reported for pension expense in 2021?
Wildhorse Enterprises provides the following information relative to its defined benefit pension plan. Balances or Values at December 31, 2020 Projected benefit obligation $2,761,900 Accumulated benefit obligation 1,970,300 Fair value of plan assets 2,283,700 Accumulated OCI (PSC) 207,900 Accumulated OCI—Net loss (1/1/20 balance, 0) 45,600 Pension liability 478,200 Other pension plan data for 2020: Service cost $94,400 Prior service cost amortization 42,000 Actual return on plan assets 128,900 Expected return on plan assets 174,500 Interest on January 1, 2020, projected benefit obligation 251,500 Contributions to plan 94,200 Benefits paid 141,200 Correct answer iconYour answer is correct. Prepare the note disclosing the components of pension expense for the year 2020. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis…