New Corporation amends its pension plan on 1/1/20. The following information is available: 1/1/20 before amendment 1/1/20 after amendment Accumulated benefit obligation P 950,000 P1,425,000 Projected benefit obligation 1,300,000 1,900,000 The past service cost as a result of this amendment is Group of answer choices P475,000 P600,000 P125,000 P950,000

New Corporation amends its pension plan on 1/1/20. The following information is available: 1/1/20 before amendment 1/1/20 after amendment Accumulated benefit obligation P 950,000 P1,425,000 Projected benefit obligation 1,300,000 1,900,000 The past service cost as a result of this amendment is Group of answer choices P475,000 P600,000 P125,000 P950,000

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 2MC

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Corporation amends its pension plan on 1/1/20. The following information is available: 1/1/20 before amendment 1/1/20 after amendment Accumulated benefit obligation P 950,000 P1,425,000 Projected benefit obligation 1,300,000 1,900,000 The past service cost as a result of this amendment is A P125,000 B P475,000 C P950,000 D P600,000
14 Fajardo Company provided the following pension plan information: Projected benefit obligation – January 1, 2021 3,500,000 Fair value of plan assets – January 1, 2021 2,800,000 Pension benefits paid during the year 250,000 Current service cost for 2021 1,750,000 Past service cost for 2021 425,000 Actual return on plan assets 180,000 Contribution to the plan 1,500,000 Actuarial loss due to change in assumption on PBO 200,000 Discount or settlement rate 10% What is the fair value of plan assets on December 31, 2021? Group of answer choices 4,050,000 4,480,000 4,300,000 4,230,000 PreviousNext
18 Fajardo Company provided the following pension plan information: Projected benefit obligation – January 1, 2021 3,500,000 Fair value of plan assets – January 1, 2021 2,800,000 Pension benefits paid during the year 250,000 Current service cost for 2021 1,750,000 Past service cost for 2021 425,000 Actual return on plan assets 180,000 Contribution to the plan 1,500,000 Actuarial loss due to change in assumption on PBO 200,000 Discount or settlement rate 10% What amount should be reported as accrued benefit cost on December 31, 2021? Group of answer choices 1,045,000 1,750,000 1,745,000 700,000
7. Sheridan Company received the following selected information from its pension plan trustee concerning the operation of the company’s defined benefit pension plan for the year ended December 31, 2020. January 1, 2020 December 31, 2020 Projected benefit obligation $1,517,000 $1,545,000 Market-related and fair value of plan assets 784,000 1,107,400 Accumulated benefit obligation 1,568,000 1,689,300 Accumulated OCI (G/L)—Net gain 0 (201,700 ) The service cost component of pension expense for employee services rendered in the current year amounted to $78,000 and the amortization of prior service cost was $121,300. The company’s actual funding (contributions) of the plan in 2020 amounted to $245,000. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,213,000 on January 1, 2020. Assume no benefits paid in…
Bonita Company sponsors a defined benefit pension plan. The corporation’s actuary provides the following information about the plan. January 1, 2020 December 31, 2020 Vested benefit obligation $1,520 $1,930 Accumulated benefit obligation 1,930 2,700 Projected benefit obligation 2,510 3,360 Plan assets (fair value) 1,730 2,670 Settlement rate and expected rate of return 10% Pension asset/liability 780 ? Service cost for the year 2020 400 Contributions (funding in 2020) 690 Benefits paid in 2020 200 (a1) Partially correct answer icon Your answer is partially correct. Prepare a 2020 pension worksheet. (Enter all amounts as positive.) BONITA COMPANYPension Worksheet—2020 General Journal Entries Memo Record Entries Items Annual PensionExpense Cash OCI— Gain/Loss Pension Asset/Liability Projected BenefitObligation PlanAssets
On January 1, 20X1, East Corporation adopted a defined benefit pension plan. At plan inception, the prior service cost was $60,000. In 20X1, East incurred service cost of $150,000 and amortized $12,000 of prior service cost. On December 31, 20X1, East contributed $160,000 to the pension plan. East assumes a 6% discount rate and 5% expected rate of return. Required: At December 31, 20X1, what amounts should East report as a pension asset (liability) and AOCI on its balance sheet? (A net pension liability should be indicated with by minus sign.)
Cullumber Company sponsors a defined benefit pension plan. The corporation’s actuary provides the following information about the plan. January 1,2020 December 31,2020 Vested benefit obligation $1,560 $2,020 Accumulated benefit obligation 2,020 2,780 Projected benefit obligation 2,620 3,290 Plan assets (fair value) 1,860 2,690 Settlement rate and expected rate of return 10 % Pension asset/liability 760 ? Service cost for the year 2020 410 Contributions (funding in 2020) 750 Benefits paid in 202- 190 (a) Compute the actual return on the plan assets in 2020. Actual return on the plan assets $ (b) Compute the amount of the other comprehensive income (G/L) as of December 31, 2020. (Assume the January 1, 2020, balance was zero.) (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net pension liability…
Bonita Company sponsors a defined benefit pension plan. The corporation’s actuary provides the following information about the plan. January 1, 2020 December 31, 2020 Vested benefit obligation $1,520 $1,930 Accumulated benefit obligation 1,930 2,700 Projected benefit obligation 2,510 3,360 Plan assets (fair value) 1,730 2,670 Settlement rate and expected rate of return 10% Pension asset/liability 780 ? Service cost for the year 2020 400 Contributions (funding in 2020) 690 Benefits paid in 2020 200 (a1) Prepare a 2020 pension worksheet. (Enter all amounts as positive.) BONITA COMPANYPension Worksheet—2020 General Journal Entries Memo Record Entries Items Annual PensionExpense
The following defined pension data of Doreen Corp. apply to the year 2020. Defined benefit obligation, 1/1/20 (before amendment) $560,0000Cr. Plan assets, 1/1/20 546,2000Cr. Pension asset/liability 13,8000Cr. On January 1, 2020, Doreen Corp., through plan amendment, grants past service benefits having a present value of 120,0000Cr. Discount rate 9%0Cr. Service cost 58,0000Cr. Contributions (funding) 65,0000Cr. Actual return on plan assets 49,1580Cr. Benefits paid to retirees 40,0000Cr. Instructions For 2020, prepare a pension worksheet for Doreen Corp. that shows the journal entry for pension expense and the year-end balances in the related pension accounts.