What is the net periodic pension cost for the year? Generous Inc. determined the following amounts related to its pensions:Benefits paid to retirees$ 335,438Expected return on plan assetsFunding contributions during the year274,613358,538Service cost331,575Investment return245,025Interest cost360,225Plan assets at fair value, January 15,495,963

Pension is an amount which is a big expenditure for any company. Pension expense depends on plan we…

Generous Inc. determined the following amounts related to its pensions: $ 335,438 Benefits paid to retirees Expected return on plan assets Funding contributions during the year 274,613 358,538 Service cost 331,575 Investment return 245,025 Interest cost 360,225 Plan assets at fair value, January 1 5,495,963

Generous Inc. determined the following amounts related to its pensions: $ 335,438 Benefits paid to retirees Expected return on plan assets Funding contributions during the year 274,613 358,538 Service cost 331,575 Investment return 245,025 Interest cost 360,225 Plan assets at fair value, January 1 5,495,963

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 3MC

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Similar questions

In 2019, Magenta Corporation paid compensation of 45,300 to the participants in a profit sharing plan. During 2019, Magenta Corporation contributed 13,200 to the plan. a. Calculate Magentas deductible amount for 2019. b. Calculate the amount of any contribution carryover from 2019.
The Pension Expense in a pension plan for the year were recorded at $856,800. In addition, an amount of $161,400 had been debited to the Other Comprehensive Income account to record all actuarial losses for the year. In addition, the company had contributed a cash amount of $350,000 to the Plan Assets. What would have been the amount recorded as Pension expenses for 2019 if the company were reporting under ASPE? Select one: a. $856,800. b. $757,200. c. $161,400. d. $350,000. e. None of the above.
The actuary for the pension plan of Buffalo Inc. calculated the following net gains and losses. Incurred during the Year (Gain) or Loss 2020 $302,700 2021 476,700 2022 (209,000) 2023 (288,200) Other information about the company’s pension obligation and plan assets is as follows. As of January 1, Projected BenefitObligation Plan Assets(market-related asset value) 2020 $3,993,500 $2,394,800 2021 4,542,200 2,203,200 2022 4,952,900 2,575,400 2023 4,228,400 3,066,100 Buffalo Inc. has a stable labor force of 400 employees who are expected to receive benefits under the plan. The total service-years for all participating employees is 4,400. The beginning balance of accumulated OCI (G/L) is zero on January 1, 2020. The market-related value and the fair value of plan assets are the same for the 4-year period. Use the average remaining service life per employee as the basis for amortization.Compute the…
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).
Sandra Company provided the following information for the current year: Current service cost 500,000 Interest expense on PBO 600,000 Interest income on plan assets 350,000 Loss on plan settlement before normal retirement date 250,000 Present value of benefit obligation settled in advance 950,000 Past service cost during the year 300,000 Actual return on plan assets 850,000 Actuarial loss on PBO during the year 200,000 Contribution to the plan 1,500,000 Benefits paid to retirees 1,000,000 Discount rate 10% . What is the fair value of plan assets at year-end? a. 3,650,000 b. 4,650,000 c. 4,900,000 d. 5,850,000
Sandra Company provided the following information for the current year: Current service cost 500,000 Interest Expense on PBO 600,000 Interest income on plan assets 350,000 Loss on plan settlement before normal retirement date 250,000 Present value of benefit obligation settled in advance 950,000 Past service cost during the year 300,000 Actual return on plan assets 850,000 Actuarial loss on PBO during the year 200,000 Contribution to the plan 1,500,000 Benefits paid to retirees…