INTER.ACC (LL)-W/CONNECT PKG
9th Edition
ISBN: 9781260636260
Author: SPICELAND
Publisher: MCG
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Chapter 17, Problem 17.28E
(1)
To determine
Other postretirement benefits: The postretirement benefits which are provided by employers, other than pensions, like medical insurance, life insurance, and legal services, and healthcare benefits, are referred to as other postretirement benefits.
To determine: Amortization of net loss
(2)
To determine
Postretirement benefit expense for 2018
(3)
To determine
Net loss or gain as at December 31, 2018
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NOTE 17: EMPLOYEE BENEFIT PLANS (in part)
($ in millions)
Changes in projected benefit obligation:
Obligation at beginning of period
Service cost
Interest cost
Pension Benefits
2020
2019
$ 648
1
$ 637
1
31
34
Actuarial (gain) loss
Benefits paid
Obligation at end of period
Change in plan assets:
54
37
(50)
(50)
$ 684
$ 659
Fair value of plan assets at beginning of period
Actual return (loss) on plan assets*
$ 496
$ 431
70
52
Employer contribution
24
74
Benefits paid
(50)
(50)
Fair value of plan assets at end of period
540
507
Net liability recognized at end of period
$ (144)
$ (152)
*Expected return $30 and $29 in 2020 and 2019, respectively
Required:
1. What amount did Maur report in its balance sheet related to the pension plan at June 30, 2020?
2. When calculating pension expense at June 30, Maur included $10 million in its income statement as the amortization of
unrecognized net actuarial loss (net loss-AOCI). This AOCI account had a balance of $350 million at the beginning of the…
3
The following data are available pertaining to Firewall Corporation's retiree health plan for 2021:
Number of employees covered
Years employed as of January 1, 2021
Attribution period
EPBO, January 1
EPBQ, December 31
Interest rate
Funding
4
5 (each)
20 years
$112,000
$123,200
10%
none
Required:
1. What is the APBO at the beginning of 2021?
2. What is the interest cost for 2021?
3. What is service cost for 2021?
4. Prepare the journal entry to record the postretirement benefit expense for 2021.
Complete this question by entering your answers in the tabs below.
Req 1 to 3
Req 4
What is the APBO at the beginning, interest cost and service cost for 2021?
1. APBO
2. Interest cost
3. Service cost
Req 1 to 3
Req 4
>
Help
*CMOU CD A1D 17 nz inn 1IDid =ın in
PBO balance, January 1
Plan assets balance, January 1
Service Cost
Interest cost
Gain from change in actuarial assumption
Benefits paid
Actual return on plan assets
Contributions 2021
$480
300
75
45
22
(36)
20
60
The expected long-term rate of return on plan assets was 8%. There were no AOCI balances related to pensions on January 1, 2021,
but at the end of 2021, the company amended the pension formula, creating a prior service cost of $12 million.
Required:
1. Calculate the pension expense for 2021.
2. Prepare the journal entries to record (a) pension expense, (b) gains or losses, (c) prior service cost, (d) funding,
and (e) payment of benefits for 2021.
3. What amount will Electronic Distribution report in its 2021 balance sheet as a net pension asset or net pension liability?
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
Calculate the pension expense for 2021. (Enter your answer in…
Chapter 17 Solutions
INTER.ACC (LL)-W/CONNECT PKG
Ch. 17 - Prob. 17.1QCh. 17 - Prob. 17.2QCh. 17 - Prob. 17.3QCh. 17 - What is the vested benefit obligation?Ch. 17 - Prob. 17.5QCh. 17 - Prob. 17.6QCh. 17 - Name three events that might change the balance of...Ch. 17 - Prob. 17.8QCh. 17 - Prob. 17.9QCh. 17 - Prob. 17.10Q
Ch. 17 - The return on plan assets is the increase in plan...Ch. 17 - Define prior service cost. How is it reported in...Ch. 17 - Prob. 17.13QCh. 17 - Is a companys PBO reported in the balance sheet?...Ch. 17 - What two components of pension expense may be...Ch. 17 - Prob. 17.16QCh. 17 - Evaluate this statement: The excess of the actual...Ch. 17 - Prob. 17.18QCh. 17 - TFC Inc. revises its estimate of future salary...Ch. 17 - Prob. 17.20QCh. 17 - Prob. 17.21QCh. 17 - Prob. 17.22QCh. 17 - The components of postretirement benefit expense...Ch. 17 - The EPBO for Branch Industries at the end of 2018...Ch. 17 - Prob. 17.25QCh. 17 - Prob. 17.26QCh. 17 - Prob. 17.1BECh. 17 - Prob. 17.2BECh. 17 - Prob. 17.3BECh. 17 - Prob. 17.4BECh. 17 - Prob. 17.5BECh. 17 - Prob. 17.6BECh. 17 - Prob. 17.7BECh. 17 - Prob. 17.8BECh. 17 - Prob. 17.9BECh. 17 - Prob. 17.10BECh. 17 - Net gain LO176 The projected benefit obligation...Ch. 17 - Prob. 17.12BECh. 17 - Prob. 17.13BECh. 17 - Postretirement benefits; determine the APBO and...Ch. 17 - Prob. 17.15BECh. 17 - Prob. 17.1ECh. 17 - Prob. 17.2ECh. 17 - Prob. 17.3ECh. 17 - Prob. 17.4ECh. 17 - Prob. 17.5ECh. 17 - Prob. 17.6ECh. 17 - Prob. 17.7ECh. 17 - Prob. 17.8ECh. 17 - Prob. 17.9ECh. 17 - Prob. 17.10ECh. 17 - Prob. 17.11ECh. 17 - PBO calculations; ABO calculations; present value...Ch. 17 - Prob. 17.13ECh. 17 - Prob. 17.14ECh. 17 - Prob. 17.15ECh. 17 - Prob. 17.16ECh. 17 - Prob. 17.17ECh. 17 - Prob. 17.18ECh. 17 - Prob. 17.19ECh. 17 - Prob. 17.20ECh. 17 - Prob. 17.21ECh. 17 - Prob. 17.22ECh. 17 - Prob. 17.23ECh. 17 - Prob. 17.24ECh. 17 - Prob. 17.25ECh. 17 - Prob. 17.26ECh. 17 - Prob. 17.27ECh. 17 - Prob. 17.28ECh. 17 - Prob. 17.29ECh. 17 - Prob. 17.30ECh. 17 - Prob. 17.31ECh. 17 - Prob. 17.32ECh. 17 - Prob. 17.33ECh. 17 - Prob. 17.1PCh. 17 - PBO calculations; present value concepts LO173...Ch. 17 - Service cost, interest, and PBO calculations;...Ch. 17 - Prob. 17.4PCh. 17 - Prob. 17.5PCh. 17 - Prob. 17.6PCh. 17 - Determining the amortization of net gain LO176...Ch. 17 - Prob. 17.8PCh. 17 - Prob. 17.9PCh. 17 - Prob. 17.10PCh. 17 - Prob. 17.11PCh. 17 - Prob. 17.12PCh. 17 - Prob. 17.13PCh. 17 - Prob. 17.14PCh. 17 - Prob. 17.15PCh. 17 - Prob. 17.16PCh. 17 - Prob. 17.17PCh. 17 - Prob. 17.18PCh. 17 - Prob. 17.19PCh. 17 - Prob. 17.20PCh. 17 - Prob. 17.21PCh. 17 - Prob. 17.1BYPCh. 17 - Prob. 17.2BYPCh. 17 - Prob. 17.3BYPCh. 17 - Prob. 17.5BYPCh. 17 - Prob. 17.6BYPCh. 17 - Prob. 17.7BYPCh. 17 - Prob. 17.8BYPCh. 17 - Prob. 17.9BYPCh. 17 - Prob. 17.11BYPCh. 17 - Prob. 1CCTCCh. 17 - Prob. 1CCIFRS
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