Imprudential, Inc., has an unfunded pension liability of $582 million that must be paid in 20 years. To assess the value of the firm’s stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 7.5 percent, what is the present value of this liability? (Enter your answer in dollars not in millions, e.g., 1,234,567. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value $

Imprudential, Inc., has an unfunded pension liability of $582 million that must be paid in 20 years. To assess the value of the firm’s stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 7.5 percent, what is the present value of this liability? (Enter your answer in dollars not in millions, e.g., 1,234,567. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value $

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 7RE

See similar textbooks

Similar questions

Imprudential, Inc., has an unfunded pension liability of $400 million that must be paid in 24 years. To assess the value of the firm’s stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 7.3 percent, what is the present value of this liability? (Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to 2 decimal places, e.g., 1,234,567.89)
Imprudential, Inc., has an unfunded pension liability of $579 million that must be paid in 25 years. To assess the value of the firm’s stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 7.2 percent, what is the present value of this liability? (Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to 2 decimal places, e.g., 1,234,567.89) Present value = $
Imprudential, inc., has an unfounded pension liability of $600 million that must be paid in 16 years. To assess the value of the firms stock, financial analysts went to discount this liability back to the present. If the relevant discount rate is 7.0 percent, what is the present value of this liability.
Imprudential, Inc., has an unfunded pension liability of $582 million that must be paid in 20 years. To assess the value of the firm’s stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 7.5 percent, what is the present value of this liability?
Imprudential, Incorporated, has an unfunded pension liability of $850 million that must be paid in 22 years. To assess the value of the firm's stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 9.5 percent, what is the present value of this liability?
Imprudential, Inc., has an unfunded pension liability of $750 million that must be paid in 18 years. To assess the value of the firm's stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 7.5 percent, what is the present value of this liability? Multiple Choice $208,117,729 $187,714,030 $199,956,249 $204,036,989 $216,743,563
Towson Company has experienced tough competition for its talented workforce, leading it to enhance the pension benefits provided to employees. As a result, Towson amended its pension plan on January 1, 2020, and granted past service costs of $250,000. Current service cost for 2020 is $52,000. Interest expense is $18,000, and interest revenue is $5,000. Actual return on assets in 2020 is $3,000. What is Towson's pension expense for 2020? a. $65,000. b. $302,000. c. $317,000. d. $315,000.
Villa Company has experienced tough competition, leading it to seek concessions from its employees in the company's pension plan. In exchange for promises to avoid layoffs and wage cuts, the employees agreed to receive lower pension benefits in the future. As a result, Villa amended its pension plan on January 1, 2020, and recorded negative past service cost of $125,000. Current service cost for 2020 is $26,000. Interest expense is $9,000, and interest revenue is $2,500. Actual return on assets in 2020 is $1,500. Compute Villa's pension expense in 2020.
MarineCo has no debt but does have unfunded pension liabilities valued at $200 million, recorded as a long-term other liability. MarineCo has detailed in its annual report a potential legal judgment of $100 million for defective engines. Since management estimates a 90 percent likelihood the judgment will be enforced against the engine maker and not MarineCo, it has not reported a liability on the balance sheet. The company’s marginal tax rate is 30 percent. Based on this information and information provided in Question below (assuming no sale of the subsidiary), what is MarineCo’s equity value? MarineCo manufactures, markets, and distributes recreational motorboats. Using discounted free-cash-flow analysis, you value the company’s operations at $2,500 million. The company has a 20 percent stake in a nonconsolidated subsidiary valued at $500 million. The investment is recorded on MarineCo’s balance sheet as an equity investment of $50 million. MarineCo is looking to increase its…
ABC LTD has a defined benefit pension plan. As at 31 December 2018, its plan had a book value of $140 million and a fair value of $160 million. The PBO at the time was $150 million. During the year, the company contributed an amount of $20 million to the fund, the fund paid out $ 15 million while the return on plan assets was $10 million. Service costs were $30 million, interest costs amounted to $12 million while actuarial gains were $3 million.Required; I). Fair value of plan assets as at 31 December 2019 II). The projected plan obligations as at 31 December 2019
The PBO was $100 million at the beginning of the year and $106 million at the end of the year. Service cost for the year was $12 million. At the end of year, pension benefits paid by the trustee were $8 million. The actuary's discount rate was 5%. At the end of the year, the actuary revised the estimate of the percentage rate of increase in the compensation levels in upcoming years. What was the amount of the gain or loss in the estimate change caused? (Enter your answer in million, round to the nearest million, without dollar sign, ex. 123 or -123).
At the end of the current year, Joshua Co. has a defined benefit obligation of $335,000 and pension plan assets with a fair value of $345,000. The amount of the vested benefits for the plan is $225,000. Joshua has a liability gain of $8,300 (beginning accumulated OCI is zero). What amount and account(s) related to its pension plan will be reported on the company's statement of financial position?