For the current year, Clark Company has the following information. Beginning plan assets was $1,000, ending plan assets was $1,100, beginning projected benefit obligation was $1,300, ending projected benefit obligation was $1,40O, beginning net gains and losses was $170 loss, and ending net gains and losses was $160 loss. The average remaining service life for Clark's employees is 20 years. What is the minimum amount of loss the company must recognize in pension expense in the current year? $3.5 $1 $2.5 $2
Q: ABC Company provided the following information for the current year: Projected Benefit Obligation,…
A: Interest costs = Projected Benefit Obligation, January 1 x discount rate = 3500000 x 10% = 350,000
Q: Vander Company provides medical care and insurance benefits to its retirees. In the current year,…
A: When a company records the compensation of its employees, such type of accounting is known as…
Q: At the end of the current period, Agler Inc. had a projected benefit obligation of $400,000 and…
A:
Q: Sandra Company provided the following information for the current year: Current service cost…
A: Net remeasurement for the retirement benefits liability includes the actuarial gain/losses, return…
Q: On January 1, 2021 STAR Company provided the following data in connection with the defined benefit…
A: Interest costs = Projected benefit obligation x Discount rate = ₱7,600,000 x 10% = ₱760,000
Q: A lump sum benefit is payable on termination of service and equal to 1 per cent of final salary for…
A: Projected Unit credit method - It is the method which divide the total pension at the normal…
Q: At the beginning of the current year, the memorandum records of OPPA Co's defined benefit plan…
A: Defined benefit obligation is a measurement of present values to determine liabilities for future…
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A: Given: 2019 2020 Contract Price 1,300,000 Costs incurred 675,000 275,000 Under…
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A: Amortization: Amortization is a process in which the cost of intangible assets is spread equally…
Q: A company gives each of its 65 employees (assume they were all employed continuously through 2020…
A: For 2020 = 65 x 12 x 8 x 25 = 156000 For 2021 = 65 * (12+(12-9) * 8 * 28 = = 65 x…
Q: ABC Company provided the following information for the current year: · Projected Benefit…
A: Interest costs = Projected Benefit Obligation, January 1 x discount rate = 3500000 x 10% = 350,000
Q: Shin Corporation had a projected benefit obligation of $3,100,000 and plan assets of $3,300,000 at…
A: Amortization: Amortization is a process in which the cost of intangible assets is spread equally…
Q: An entity has 100 employees, who are each entitled to five working days of paid sick leave for each…
A: Expected cost of accumulating paid absences at 31 December 2021 In 2022 92 employee - will take 5…
Q: On January 1, 2021 COMET Company provided the following data in connection with the defined benefit…
A: Interest costs = Projected benefit obligation x Discount rate = ₱7,600,000 x 10% = ₱760,000
Q: Sandra Company provided the following information for the current year: Current service cost…
A: Fair value = benefit which we can get in the future on the asset market price is known as fair…
Q: The following information relates to the defined benefit pension plan for the employees of a…
A: Given: Projected benefit obligation on 12/31/20 =$300000Fair value of plan assets on…
Q: Gruber Enterprises started its defined benefit pension plan on January 1, Year 1. By the beginning…
A: Fair market value It is the price, an asset would be sold in an open market when certain covenants…
Q: At January 1, 2020, Wembley Company had plan assets of $250,000 and a defined benefit obligation of…
A: Pension plan: Pension plan is the plan devised by corporations to pay the employees an income after…
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A: Pension liability in its balance sheet as of December 31 2022, Projected Benefit obligation - Plan…
Q: Coronado Corporation had a projected benefit obligation of $2,890,000 and plan assets of $3,097,000…
A: Corridor rule says that losses or gains which exceed 10 % of Higher of Pension benefit obligation…
Q: A Company provided the following information for the current year: Current service cost 500,000…
A: Defined benefits plans are those plans which are maintained by the employer for the purpose of…
Q: The following information for Cooper Enterprises is given below: December 31, 2015 Assets and…
A: Pension liability refers to the kind of fund which has the projected debts that exceeds the present…
Q: During its first year of operations, a company granted its employees vacation privileges and pension…
A: The principle of expense recognition states that expenses incurred by the company with the resulting…
Q: A company gives each of its 50 employees (assume they were all employed continuously through 2020…
A: Vacation Liability is a provision which is created to write-off expenditure which arises because of…
Q: Shin Corporation had a projected benefit obligation of $3,100,000 and plan assets of $3,300,000 at…
A: Amortization: Amortization is a process in which the cost of intangible assets is spread equally…
Q: Tevez Company experienced an actuarial loss of $750 in its defined benefit plan in 2020. For 2020,…
A: A statement of Comprehensive Income depicts the adjustments on equity during the given period of…
Q: Everdeen Corporation has the following information provided below: December 31, 2022 Assets and…
A: Particulars Amount Accumulated Other Comprehensive Loss $167,900 Less: Project Benefit…
Q: Sandra Company provided the following information for the current year: Current service cost…
A: In accounting, the projected benefit obligation (PBO) is a pension concept. The present value of an…
Q: Current service cost 500,000 Interest on projected benefit obligation 600,000 Interest income on…
A: Employee benefits are the benefits that are received by compensating workers above and beyond their…
Q: During its first year of operations, a company granted employees vacation privileges and pension…
A: What is the total cost of vacation pay and pension rights to be recognized in the first year =…
Q: Sandra Company provided the following information for the current year: Current service cost…
A:
Q: A lump sum benefit is payable on termination of service and equal to 1 per cent of final salary for…
A: All values are in (P).
Q: Buffalo Corporation had a projected benefit obligation of $3,280,000 and plan assets of $3,446,000…
A: Solution:- calculation of the Minimum amortization of the actuarial loss as follows under:-
Q: On January 1 of the current reporting year, Coda Company's projected benefit obligation was…
A: Particulars Amounts ($) PBO on January 1 $30,00,000 Add: Service cost during the year $8,75,000…
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A: Attribution period = ( 55 - 25 ) = 30 years. Calculation of…
Q: At January 1, 2020, Blossom Corporation had plan assets of $258,000 and a defined benefit obligation…
A: Solution- Effective Charging Rate = (1 + Rate of expected return)0.5 - 1 = (1 + 0.10)1/2 - 1 =…
Q: Projected benefit obligation 700,000 Other Items Pension asset / liability, January 1, 2015 20,000…
A: Given Plan assets (at fair value) $400,000 And Contributions 250,000
Q: On January 1, Year 1, a company had plan assets of $309,510 and a defined benefit obligation of the…
A: working notes : Closing balance of plan assets=$309,510 +$37,070+$24,670-$21,700=$3,49,550
Q: A company gives each of its 50 employees (assume they were all employed continuously through 2020…
A: Vacation liability is amount payable to employees for vacation taken by them.
Q: Louie Company has a defined benefit pension plan. On December 31 (the end of the fiscal year), the…
A: Service costs = Ending PBO - Interest costs + benefit paid to retirees - Beginning PBO where,…
Q: Turner Inc. provides a defined benefit pension plan to its employees. The company has 150 employees.…
A: Note: As per our guidelines, only the first three subparts will be answered. 1. Prior Service Cost…
Q: A company gives each of its 60 employees (assume they were all employed continuously through 2020…
A: For the year 2020: 60 employees x 8 hours a day x 12 day a vacation x $33 per hour $190,080 For the…
Q: paid were $45,000. The amount of accumulated OCI-gains amortized in 2021 is $_________. (If there…
A: The accumulated depreciation is deducted out of the purchase value of a company in order to arrive…
Q: What amount should be reported as accrued benefit cost at year-end? a. 2,000,000 b. 1,500,000 c.…
A: Calculation of the amount should be reported as accrued benefit cost at year end :…
Q: PQR Company provided the following information for the current year: · Projected Benefit…
A: The current service cost is the employee expenses incurred for the current year. Computation of…
Q: A lump sum benefit is payable on termination of service and equal to 1 per cent of final salary for…
A: A defined benefit obligation is created for paying the employees at the time of their retirement…
Q: You gathered the following information related to Ashley Company’s the defined benefit plan for the…
A: Defined benefit cost for the year = (Ending Present value of obligation + Benefits paid - Beginning…
Q: Shamrock Corporation had a projected benefit obligation of $3,104,000 and plan assets of $3,300,000…
A: The actuarial gain or loss exist when there is increase or decrease in projection that is used to…
Q: A company gives each of its 80 employees (assume they were all employed continuously through 2020…
A: Liability is the amount due to be paid during year but not paid yet.
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- LO.2 Oak Corporation has the following general business credit carryovers. If the general business credit generated by activities during 2019 equals 36,000 and the total credit allowed during the current year is 60,000 (based on tax liability), what amounts of the current general business credit and carryovers are utilized against the 2019 income tax liability? What is the amount of unused credit carried forward to 2020?Pinecone Company has plan assets of 500,000 at the beginning of the current year and expects to earn 12% on its plan assets during the year. Pinecones service cost is 230,000, and its interest cost is 55,000. Compute Pine-cones pension expense for the current year.20 Jeff Irvin Company provided the following information for the current year: Current service cost 500,000 Interest on PBO 600,000 Interest income on plan asset 350,000 Loss on settlement 250,000 Past service cost during the year 300,000 Actual return on plan asset 850,000 Actuarial loss during the year 200,000 Contribution to the plan 1,500,000 What is the employee benefit expense for the current year? Group of answer choices 1,500,000 1,100,000 1,050,000 1,300,000
- 5. You gathered the following information related to Ashley Company’s the defined benefit plan for the current year ended December 31: Fair value of plan assets: P2,100 million at January 1, and P2,300 million at December 31 Present value of obligation to provide benefits: P2,200 million at January 1, and P2,600 million at December 31 Contributions paid to the fund: P80 million Benefits paid to retired employees: P50 million The defined benefit cost for the year is Group of answer choices P250 million P280 million P200 million P120 millionDuring its first year of operations, a company granted employees vacation privileges and pension rights estimated at a cost of $24,341 and $14,298. The vacations are expected to be taken in the next year and the pension rights are expected to be paid in the future 5-30 years. What is the total cost of vacation pay and pension rights to be recognized in the first year? a.$24,341 b.$14,298 c.$67,235 d.$38,6394 Bird Company incurred $10,000 in salaries and wages for employees for the year; $9,000 of these salaries and wages had been paid by the end of the year. Which of the following statements about this situation is correct? Multiple Choice Salaries and Wages Payable on the income statement will be $9,000. Salaries and Wages Expense on the income statement will be $1,000. Salaries and Wages Expense on the balance sheet will be $10,000. Salaries and Wages Payable on the balance sheet will be $1,000.
- 5 A lump sum benefit is payable on termination of service and equal to 1 per cent of final salary for each year of service. The salary in year 1 is P10,000 and is assumed to increase at 7 per cent (compound) each year. The discount rate used is 10 per cent per year. The entity does not fund its obligation to pay lump-sum benefits. The employee is expected to leave at the end of year 5. The amount to be recognized as expense in the second year is Group of answer choices P98 P196 P107 P131During its first year of operations, a company granted its employees vacation privileges and pension rights estimated at a cost of $25,288 and $16,715, respectively. The vacations are expected to be taken in the next year, and the pension rights are expected to be paid in the future 5-30 years. What is the total cost of vacation pay and pension rights to be recognized in the first year? a.$16,715 b.$25,288 c.$75,433 d.$42,003CHOOSE THE LETTER OF THE CORRECT ANSWER What is the employee benefit expense for the current year? a. 1,180,000b. 2,100,000c. 1,850,000d. 1,050,000 What is the remeasurement gain or loss on plan assets on Dec. 31? a. 670,000 gainb. 670,000 lossc. 650,000 gaind. 650,000 loss
- 3b. The following information is available for the pension plan of Vaughn Company for the year 2020. Actual and expected return on plan assets $ 14,700 Benefits paid to retirees 40,800 Contributions (funding) 81,100 Interest/discount rate 10 % Prior service cost amortization 7,600 Projected benefit obligation, January 1, 2020 458,000 Service cost 63,900 (a) Your answer has been saved. See score details after the due date. Compute pension expense for the year 2020. Pension expense for 2020 $enter pension expense for 2017 in dollars Attempts: 1 of 1 used (b) Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for…Provide solution on each answer. Thank You. Generous Company has established a defined benefit plan indicating a plan formula for annual benefit equal to 2% multiplied by the number of years in service multiplied by the final year’s salary. The annual benefit is payable at the end of each year. An employee was hired by the entity on January 1, 2001 and expected to retire on December 31, 2045. The employee’s retirement is expected to span 21 years. The employee’s final salary at retirement is expected to be P800,000 and the appropriate discount rate is 8%. On January 1, 2021, the plan formula was amended by increasing the percentage from 2% to 3%. The amendment was made retroactive to consider past service years. The present value of an ordinary annuity of 1 at 8% for 21 periods is 10.02 and the present value of 1 at 8% for 25 periods is 0.15. 1. What is the projected benefit obligation before amendment on January 1, 2021? 2. What is the projected benefit obligation after on January 1,…Provide solution on each answer. Thank You. Generous Company has established a defined benefit plan indicating a plan formula for annual benefit equal to 2% multiplied by the number of years in service multiplied by the final year’s salary. The annual benefit is payable at the end of each year.An employee was hired by the entity on January 1, 2001 and expected to retire on December 31, 2045. The employee’s retirement is expected to span 21 years. The employee’s final salary at retirement is expected to be P800,000 and the appropriate discount rate is 8%. On January 1, 2021, the plan formula was amended by increasing the percentage from 2% to 3%. The amendment was made retroactive to consider past service years. The present value of an ordinary annuity of 1 at 8% for 21 periods is 10.02 and the present value of 1 at 8% for 25 periods is 0.15.1. What is the projected benefit obligation before amendment on January 1, 2021?a. 400,000 b.160,000 c. 320,000 d. 480,960 2.What is the projected…