Question textTriangle Tower Corp., a company reporting under IFRS, has a definedbenefit pension plan. Pension information concerning the 2019 and2020 fiscal years is presented below (in millions):Information provided by the pension plan actuaryDefined benefit obligation (DBO), December 31, 2019$1,800Past service cost (PSC) from a plan amendment made400January 2, 2020Current service costs (CSC) for 20205202020 interest cost on DBO, based on 10% discount rate1802020 actuarial gain on DBO arising from a change in250estimateBenefits paidFunding for the yearInformation provided by the pension plan trusteeFair value of plan assets, January 1, 2020$1,600Actual return on plan assets224What is the pension expense for the year ended December 31, 2020?Select one:14a.$500b.$540C.$920d.$940 Question textThe computation of pension expense includes all thefollowing exceptSelect one:13a.interest on plan assetsb.all of these are includedC.service cost component measured using current salarylevels.d.interest on defined benefit obligation.

“Since you have asked multiple question, we will solve the first question for you. If you want any…

The computation of pension expense includes all the following except Select one: 13 а. interest on plan assets b. all of these are included с. service cost component measured using current salary levels. d. interest on defined benefit obligation.

The computation of pension expense includes all the following except Select one: 13 а. interest on plan assets b. all of these are included с. service cost component measured using current salary levels. d. interest on defined benefit obligation.

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 7MC: Which of the following is not a component of pension expense? a. amount funded b. service cost c....

See similar textbooks

Related questions

Q: Ehrlich Company reported the following information for 2021: Sales revenue $2,500,000 Cost of goods ...

A: Comprehensive Income Statement: When combined with standard net income, the statement of comprehensi...

Q: Decaprio Inc. produces and sells a single product. The company has provided its contribution format ...

A: Contribution Format - This income statement begins with Sales. Then all the variable expense needs t...

Q: Multiple Company had the following liabilities on December 31, 2021. How much should be reported as ...

A: Current liabilities are those short-term liability which is paid within the duration of one year. It...

Q: Graded Discussion #3 _C-V-P Analysis Greek Manufacturing Company produces and sells a line of produc...

A: d) Marginal Income statement- Particulars Amount Sales 4,500,000 Less, variable cost ...

Q: Calculate weighted avg common stock outstanding and basic eps for year ended December 31, 2016.

A: Basic Earnings per share is calculated by dividing the profit available for common shareholders afte...

Q: Cheatem Trading Company's master budget reflects budgeted sales information for the month of March, ...

A: Sales Budgeted : It's financial plan that estimates a company's total sales in a specific time per...

Q: differentiate and give illustrations of the difference between FIFO and Weighted Average.

A: Inventory Valuation - There are three method using which company can value their inventory a. FIFO b...

Q: dentify and explain, in your own words, the five (5) fundamental ethical principles that apply to al...

A: Professional Ethics It is important for the professional Accountant should have the professional eth...

Q: The firm repurchases its own common stock. e. The firm pays its quarterly dividend. f. The firm issu...

A: Sources of cash are the items from which cash inflows are generated and uses of cash are the items w...

Q: oa. In their policy, the word "you" includes Mike Hall, Rhonda Hall, and Porcine Bank. ob. In their ...

A: Mike and Rhonda hall purchased homeowner policy Home is been mortgaged with Bank and loan is the nam...

Q: Describe the audit procedures you would use to learn about each of the situations listed. Begin ...

A: Audit procedures are procedures adopted by auditors to obtain sufficient and appropriate audit evide...

Q: In case of electric cooperatives, the quorum required in the meeting of the general assembly is O 15...

A: According to Electric By-Laws, Quorum required for general assembly meeting shall be at least 5% of ...

Q: Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, t...

A: Solution 4: Required Contribution margin ratio 40% Therefore, Required Variable Cost ratio 60%...

Q: Keira purchased several pieces of equipment (all 7-year property) during 2021 for $2.100.000. She ue...

A: * As per Bartleby policy, if the question is unrelated then answer first only. Section 179 Expense...

Q: Jones Company has the following balances for the current month: Direct materials used $24,000 Direct...

A: The question is based on the concept of Cost Accounting. Conversion costs are directly related to th...

Q: Financial Accounting and Reporting, Advanced Financial Accounting and Reporting, Management Accounti...

A: The duties of a controller include assisting with the preparation of the operating budget, overseein...

Q: Three former Uruguayan presidents recommended the current administration that without abandoning Mer...

A: Competitive advantage under business terms is defined as the element that authorize the firms or bus...

Q: Which of the following is not an administrative remedy available to the government?

A: Answer: C. Tax Avoidance

Q: Goddard Company has used the FIFO method of inventory valustion since it began operations in 2018. G...

A: A journal entry is a form of accounting entry that is used to report a business transaction in a com...

Q: O’Connor Company ordered a machine on January 1 at a purchase price of $100,000. On the date of deli...

A: Stockholders' Equity: Stockholders' equity is the total assets of a business that shows how much the...

Q: Jay Banning, CEO and a major stockholder of Banning Incorporated, was unhappy with its operating res...

A: The practice of reviewing your project's financial performance is known as cost variance. The cost v...

Q: Ann's average income tax rate is 30%, and her marginal income tax rate is 37%. Her property tax bill...

A: Solution:- Given, Average tax rate = 30% Marginal tax rate = 37% Tax bill = 12,000 Interest payment ...

Q: Antonio Melton, the chief executive officer of Melton Corporation, has assembled his top advisers to...

A: The question is based on the concept of Financial Management. Net present value is the difference be...

Q: Accounting At the beginning of the year, Ernie has a 60% capital and profits interest and Bert has a...

A: Partnership interest means a partner's share in the profits and losses of ...

Q: 6.If return on investment is a measure used on the balanced scorecard, under which perspective woul...

A: 6. Return on Investment measure is used under Financial Perspective. 7. Benchmarking is the process ...

Q: Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets ...

A: Times interest earned = Earnings before interest and tax (EBIT) / Interest expense where, EBIT = Net...

Q: Find the semi-annual payment of a P15,000 debt to be amorlized by 5 equal payments at the end of eac...

A: Solution:- Given, Loan amount = PV = P15,000 Number of payments = n = 5 Interest rate = i = 15%/2 ...

Q: Why are many companies divided into departments?

A: Department: As a business unit, a department represents a category or functional area of an organiza...

Q: Ahlia Products Company uses an automated process to clean and polish its souvenir items. For March, ...

A: Cost of Production report- The cost of production report displays all expenditures associated with a...

Q: In retail we are always adjusting our operations to ensure financial goals are met. Aside from adjus...

A: Introduction Adjustments is carried out to show the accurate picture of financial statement at the e...

Q: Problem 11-11 (Algo) Review problem-understanding liquidity measures LO 1 Assume that the current ra...

Q: Allie purchased an office building on October 23, 2018 for $150,000. She uses this building in her b...

A: As per MACRS depreciation table, office building qualifies for 39 year, straight line class. As per ...

Q: The following information is available for Ivanhoe Corporation's pension plan for the year 2020: Pla...

A: Pension expense is the amount that a company charges to expense in relation to its responsibilities ...

Q: Jones Company has the following balances for the current month: $24,000 Direct materials used Direct...

A: Conversion Costs = Direct labor + overhead costs Where, Overhead costs = indirect labor + productio...

Q: Problem 11-12 (Algo) Effect of transactions on liquidity measures LO 1 Selected balance sheet acc...

A: Current Ratio - Current Ratio shows the company's liquidity. This ratio indicates how much short ter...

Q: 7. Mr. Kwon imports Korean vegetables and sells them in the domestic market for Korean residents in

A: As per the circular issued by Bureau of Internal Revenue [BI...

Q: Anita pays 50% of the total cost for her benefits, her employer pays the other 50%. monthly premium ...

A: Total Combined benefit payable = Health premium + Dental Premium = $167.50 +$75.50 = $243 Since Anit...

Q: 0010 40 2 $15 $645 $57.00 $43.61 $15 $5 0011 40 8 $15 $780 $78.00 $59.67 $15 $0 1101 $48,000 $923 $1...

A: Overtime: Overtime alludes to any hours worked by a representative that surpass their ordinarily boo...

Q: Haribo has manufactured gummy bears, since 1920. Those bears are currently made in 16 plants around ...

A: GIVEN The direct labour costs likely to be incurred in the production of gummy bears is

Q: Itzy Corporation provides the following information for the month of February based on the productio...

A: Under Variable Costing all Variable manufacturing costs are included in the product Cost. All Fixed ...

Q: shes to calculate a project's present worth with estimated costs of Php 1.69M now and Php 350,000 pe...

A: The answer has been mentioned below.

Q: Acme Inc. has the following information available: Actual price paid for material $0.90 Standard pr...

A: Material Price Variance (MPV) =(SP-AP) x AQ. SP = Standard Price = 1 AP = Actual Price = 0.9 AQ = Ac...

Q: The following information is available for SAN JOSE CORP.'s new product line: Sale price per unit Va...

A: The direct costing is similar to variable costing where only direct variable costs are added to prod...

Q: CABADBARAN CORP., produces non-fat yogurt which it sells to restaurants and ice cream shops. The pro...

A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for y...

Q: What is the carrying amount of the bond investment on December 31, 2021? ( round off final answer)

A: Present Value of Bond = Present Value of Coupon Payments + Present Value of Redemption Value Present...

Q: Given below are the transactions related to Hameed Enterprises for the month of March 2021. Date Tra...

A: The question is related to Journal entries, ledger and Trial Balance for the month of March, 2021. ...

Q: An amount of 100,000 was borrowed and was to be repaid in 10 instalments at the end of every quarter...

A: Solution:- Borrowed amount = 100,000 Rate of interest 12% semi-annually Number of year, n= 2 and 1/...

Q: Alyssa bought a machine (7-year property) for her business on May 5, 2021 for $6.400. She uses the m...

A: Under MACRS, the first year depreciation rate for 7-year property is 14.29%. As the machine has been...

Q: A mother borrowed P200.000 with 2% interest monthly and promised to pay the amount in 30 equal month...

A: EMI or Equated monthly installment is an arrangement entered between the lending institution and the...

Q: TRUE OR FALSE?

A: TRUE

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

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Employee Compensations and Benefits

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which of the following is not a component of pension expense? a. amount funded b. service cost c. expected return on plan assets d. interest cost
36. Alternative methods exist for the measurement of the pension obligation (liability). Which measure requires the use of future salaries in its computation? Vested benefit obligation Projected benefit obligation Restructured benefit obligation Accumulated benefit obligation
Question Description The following information was obtained from the financial statements of X Inc. Defined Benefit Plan Obligations Pension Benefits 2020……………………..2019 Defined Benefit Obligation(DBO): Balance, beginning of year…………………………………………$40,032…………………..42,370 Current Service Cost…………………………………………………… 864…………………. 1,126 Interest Cost…………………………………………………………… 2,344…………………... 2,255 Benefits Paid……………………………………………………………(3,198)………………….. (2,881) Actuarial Gains………………………………………………………... (3,339)………………….. (2,838) Balance, end of year………………………………………………….$36,703……………….….$40,032 Defined Benefit Plan Assets Pension Benefits 2020…………..…………2019 Balance, beginning of year…………………………………………$75,891………………….$90,828 Expected return on Plan Assets……………………………………. 5,599………………….. 6,723 Employee…
Which component of Kensington’s periodic pension cost would be shown in OCI ratherthan P&L?A . Service costB . Net interest (income) expenseC . Remeasurements
Th e relationship between the periodic pension cost and the plan’s funded status is bestexpressed in which of the following?A . Periodic pension cost of –£483 = Ending funded status of –£4,774 – Employer contributions of £693 – Beginning funded status of –£4,984.B . Periodic pension cost of £1,322 = Benefi ts paid of £1,322.C . Periodic pension cost of £210 = Ending funded status of –£4,774 – Beginning fundedstatus of –£4,984
Question Content Area ERISA (Pension Reform Act of 1974) provides guidance for actual return on plan assets minimum funding during the year accumulated benefit obligation projected benefit obligations
SFAS No. 87, “Employers’ Accounting for Pensions,” requires an understanding of certainterms. Discuss the following components of annual pension cost:i. Service costii. Interest costiii. Actual return on plan assetsiv. Amortization of unrecognized prior service costv. Amortization of the transition amount
What was the dollar amount of loss (gain) on plan assets that was recognized in OCI during 20X1? Prepare the journal entries to record pension expense, the contribution, and the OCI effects.
Among the three measures of the pension obligation: VBO, ABO, and PBO the measure(s) using future salaries in the computation is(are) (Enter 1, 2, 3, or 4 that represents the correct answer): VBO PBO ABO and PBO VBO, ABO, and PBO.
describe the components of a company’s defi ned benefi t pension costs;
Warrick Boards calculated pension expense for its underfunded pension plan as follows: ($ in millions) Service cost $ 224 Interest cost 150 Expected return on the plan assets ($100 actual, less $10 gain) (90 ) Amortization of prior service cost 8 Amortization of net loss 2 Pension expense $ 294 Required: Which elements of Warrick’s balance sheet are affected by the components of pension expense? What are the specific changes in these accounts?
The net pension liability (PBO minus plan assets) is increased by: A. Service cost. B. Expected return on plan assets. C. Amortization of prior service cost. D. Cash contributions to plan assets.