he following information relates to the pension plan for the employees of Cullumber Co.:(See Image)Cullumber estimates that the average remaining service life is 16 years. Cullumber's contribution was $ 1213000 in 2021 and benefits paid were $ 877000.The actual return on plan assets in 2021 isa. $ 2011000.b. $ 1134000.c. $ 798000.d. $ 336000. 1/1/2012/31/2012/31/21Accum. benefit obligation$ 81400002$8560000$ 11500000Projected benefit obligation8665000935800012907000Fair value of plan assets7825000982000010954000AOCI - net (gain) or loss-0-(1402000 )( 1570000 )Settlement rate (for year)11%11%Expected rate of return (for year)8%7%

The question is based on the concept of Financial Accounting.

Cullumber estimates that the average remaining service life is 16 years. Cullumber's contribution was $ 1213000 in 2021 and benefits paid were $ 877000. The actual return on plan assets in 2021 is a. $ 2011000. b. $ 1134000. c. $ 798000. d. $ 336000.

Cullumber estimates that the average remaining service life is 16 years. Cullumber's contribution was $ 1213000 in 2021 and benefits paid were $ 877000. The actual return on plan assets in 2021 is a. $ 2011000. b. $ 1134000. c. $ 798000. d. $ 336000.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter28: Income Taxation Of Trusts And Estates

Section: Chapter Questions

Problem 13CE

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Concept explainers

Employee Benefits

In an organization employees are the most important resource and most important asset. They can lead an organization to the sky or can be the reason for unsuccessful of business. Therefore, it is very much important that employees of an organization should be satisfied by the environment of the organization and most importantly with the salary, wages incentives, etc.

Question

he following information relates to the pension plan for the employees of Cullumber Co.:

(See Image)

Cullumber estimates that the average remaining service life is 16 years. Cullumber's contribution was $ 1213000 in 2021 and benefits paid were $ 877000.

The actual return on plan assets in 2021 is

a. $ 2011000.

b. $ 1134000.

c. $ 798000.

d. $ 336000.

1/1/20
12/31/20
12/31/21
Accum. benefit obligation
$ 8140000
2$
8560000
$ 11500000
Projected benefit obligation
8665000
9358000
12907000
Fair value of plan assets
7825000
9820000
10954000
AOCI - net (gain) or loss
-0-
(1402000 )
( 1570000 )
Settlement rate (for year)
11%
11%
Expected rate of return (for year)
8%
7%

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Accounting for Employee Compensations and Benefits

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