Concept explainers
(1)
Pension plan: This is the plan devised by corporations to pay the employees an income after their retirement, in the form of pension.
Pension expense: Pension expense is an expense to the employer paid as compensation after the completion of services performed by the employees.
To discuss: Whether the pension expense is computed based on the amounts that are not reported on the
(2)
To mention: The amounts that would be reported as net pension liability on the balance sheet
(3)
To mention: The amounts that would be reported as net pension asset on the balance sheet
(4)
To indicate: The other items which were reported on disclosure notes were reported on balance sheet
(5)
To discuss: The item reported as ‘actuarial gain’ and ‘actuarial loss’ in the notes to financial statements
(6)
To indicate: The components of pension expense which represent deferred recognition, and indicate where would these items be reported before being amortized
Want to see the full answer?
Check out a sample textbook solutionChapter 17 Solutions
Intermediate Accounting
- Question 20 True or False. The concept of the inevitable gain in a life insurance policy indicate that using insurance proceeds will not cost the estate more than using IRC Sections 6166 or 6161 to pay the tax. True Falsearrow_forward28. S1: Fringe benefit that is exempt from fringe benefit tax is likewise exempt from any other form of income tax. S2: Any amount given by the employer as de minimis to its employees, shall not constitute as deduction upon such employer. Group of answer choices c. Both are true b. Only S2 is true a. Only S1 is true d. Both are falsearrow_forwardPls answer number 15 with solutions An entity is the defendant in a patent infringement lawsuit. The entity’s lawyers believe there is a 30% chance that the court will dismiss the case and the entity will incur no outflow of economic benefits. However, if the court rules in favor of the claimant, the lawyers believe that there is a 20% chance that the entity will be required to pay damages of ₱800,000 (the amount sought by the claimant) and an 80% chance that the entity will be required to pay damages of ₱400,000 (the amount that was recently awarded by the same judge in a similar case). Other outcomes are unlikely. The court is expected to rule in late December 20x2. There is no indication that the claimant will settle out of court. A 7% risk adjustment factor to the probability-weighted expected cash flows is considered appropriate to reflect the uncertainties in the cash flow estimates. An appropriate discount rate is 10% per year. How much is the provision for lawsuit at…arrow_forward
- 8. S1: Fringe benefit that is exempt from fringe benefit tax is likewise exempt from any other form of income tax. S2: Any amount given by the employer as de minimis to its employees, shall not constitute as deduction upon such employer. Group of answer choices a. Only S1 is true c. Both are true d. Both are false b. Only S2 is truearrow_forwardLiquidating partnershipscapital deficiency Nettles, King, and Tanaka are partners sharing income 3:2:1. After the firm's loss from liquidation is distributed, the capital account balances were as follows: Nettles, 15,000 Dr.; King, 46,000 Cr; and Tanaka, 71,000 Cr. If Nettles is personally bankrupt and unable to pay any of the 15,000, what will be the amount of cash received by King and Tanaka upon liquidation?arrow_forwardA2 7b May I please have the answer in formula form and not excel. thx:) 7. You are making plans for your retirement. You have just turned 30 and want to retire on your 65th birthday. Once retired, you plan to move to a tax-free Caribbean state, where you believe you can live comfortably on your retirement savings. You plan to make your first withdrawal from your retirement savings when you retire at age 65 and your last withdrawal one month before your 85th birthday. Based on family history, you expect to live until exactly age 85. Your plan is to have a total of $1 million when you retire. Your current salary is $36,000 per year, or $3,000 per month. Your personal tax rate is approximately 30%. You estimate that you can earn an average return of 12% APR compounded annually on any money you invest over the next 60 years. You want to start putting aside a fixed amount of money at the end of every month until your retirement at age 65. You will make your first deposit one month from now…arrow_forward
- Q5: Research about and in your own words, describe the different EXCLUSIONS FROM GROSS INCOME: Ø Proceeds of life insurance policyØ Amount received by the insured as a return of premiumØ Gift, bequest, or descentØ Compensation for injuries or sicknessØ Income exempt under treatyØ Retirement benefits, pensions, gratuities, etc.arrow_forward34) 1. Fundamental purposes of the principle of indemnity include which of the following? I- To reduce physical hazards II- To prevent the insured from profiting insurancearrow_forwardA2 7a May I please have the answer in formula form and not excel. thx:) 7. You are making plans for your retirement. You have just turned 30 and want to retire on your 65th birthday. Once retired, you plan to move to a tax-free Caribbean state, where you believe you can live comfortably on your retirement savings. You plan to make your first withdrawal from your retirement savings when you retire at age 65 and your last withdrawal one month before your 85th birthday. Based on family history, you expect to live until exactly age 85. Your plan is to have a total of $1 million when you retire. Your current salary is $36,000 per year, or $3,000 per month. Your personal tax rate is approximately 30%. You estimate that you can earn an average return of 12% APR compounded annually on any money you invest over the next 60 years. You want to start putting aside a fixed amount of money at the end of every month until your retirement at age 65. You will make your first deposit one month from now…arrow_forward
- Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENTAccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,