INTERMEDIATE ACCOUNTING +ACCLL
9th Edition
ISBN: 9781260951349
Author: SPICELAND
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 17, Problem 17.5BYP
(1)
To determine
Pension plan: This is the plan devised by corporations to pay the employees an income after their retirement, in the form of pension.
Types of pension plans:
- Defined contribution pension plans: In such plans, employers contribute fixed amounts annually, to the pension fund. The benefit amounts are based on size of pension fund available at the time of retirement. There is no commitment on the part of the employers to pay fixed retirement benefits.
- Defined benefit pension plans: In such plans, employers pay annual fixed contributions to employees as retirement benefits. Employers promise to pay fixed retirement benefits, which are computed based on the service period of employee, annual compensation of the employee, and age.
To mention: The type of pension plan offered by Corporation M
(2)
To determine
To mention: The persons who suffer the risk of reduction in retirement benefits in the plan offered by Corporation M
(3)
To determine
The amount entitled by an employee who contributes $1,000 in first year, and leaves the company in early second year, when the mutual fund of contributions value is 2%
(4)
To determine
To describe: The accounting treatment of pension plan for 2015
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Question 17
S1: Employee-sponsored retirement plans
can be categorized into two: current service
cost and projected benefit obligation.
S2: Liabilities pertains to the settlements
which resulted in an outflow of resources
embodying economic benefits.
S3: PAS 19, provides that only the unvested
past service costs shall be recognized as
expense immediately.
one statement is true
two of the statements are true
all statements are false
all statements are true
QUESTION 16
A 401 (k) Plan:
O A. is a mandatory retirement program.
B. is not a very effective way of achieving your retirement goals.
O C. is funded fully by your employer as a retirement benefit for you.
O D. is a defined benefit retirement program.
O E. None of the above.
QUESTION 17
Which of the following is most true regarding retirement planning?
A. You can expect public sources to fund most of your retirement needs.
O B. Ownership for retirement planning has shifted more from employers and government to individuals.
O C. You do not need to worry about funding your retirement from multiple sources.
O D. Retirement planning should be delayed until you are at least 30 years old or own your own home.
QUESTION 9
Private (employer) sources for funding your retirement could include all of the following, except:
A. Pension
O B. Personal Roth IRA
C. 401 (k) Plan
O D. Cash balance plans
Chapter 17 Solutions
INTERMEDIATE ACCOUNTING +ACCLL
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
Knowledge Booster
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
- 20 Question 21 A debit balance in a company's Pension Asset/Liability account implies that the company has funded more than the amount Expensed since the pension plan was initiated. O True O Falsearrow_forwardQUESTION 18 A tax-advantaged pension plan, such as a 401(k), that both employer and employee may contribute that allows for retirement saving is called a: defined contribution defined benefit plan O a pension plan All of these are truearrow_forwardQUESTION 27 Personal sources for funding your retirement could include all of the following, except: O A. Roth IRA B. TraditionalIRA O C. Pension D. Savings E. Stocks and Bondsarrow_forward
- Question 5 of 20 View Policies -/1 ||| In the calculation of pension expense recognized for a period by an employer sponsoring a defined benefit pension plan, which components will not be included? O Interest cost on the projected benefit obligation. O Excess of accumulated benefit obligation over the fair value of the plan assets. O Actuarial present value of benefits attributed by the pension benefit formula to employee service during that period. O Amortization of the unrecognized net obligation (and loss or cost) or unrecognized net asset (and gain) existing at the date of transition. ...arrow_forwardQuestion 24 When an employer makes contributions to an employer-sponsored retirement plan, the value of those contributions is included in the employee's gross income. 200 O True O Falsearrow_forwardQuestion 7 Union dues can be collected to cover the following: a Administration b) Social Fund c) Special Fund . d) Initiation e) Insurance Question 8 It's common for benefits rates to change on an basis. Question 9 Garnishment rules are the same in every jurisdiction. True • False Question 10 An employee can typically opt out of contributing to a company pension plan True • False Question 11 RRSP stands for O a) Regulated Retirement Savings Pension b) Registered Retirement Savings Pension c) Regulated Retirement Savings Plan d) Registered Regulated Savings Plan e) Registered Retirement Savings Plan O O O Carrow_forward
- Question 14 what give rises to the changes in PBO balance? A- service cost and interest cost B- prior service cost that is caused by a change in pension formula C- changes in life expectancy estimates D- all of the above O A O C ODarrow_forwardQuestion 17: Which of these is NOT a regulation set forth within ERISA? Answer: A. Employees must be provided with pertinent retirement plan information. В. Employers are required to offer retirement plans. C. Fiduciaries of the retirement plan may be held accountable for breaches of responsibility. D. There are specific timeframes over which retirement plan benefits become nonforfeitable.arrow_forwardFlag question Question text In accounting for a pension plan, any difference between the pension cost charged to expense and the payments into the fund should be reported as Select one: 15 а. pension asset/liability. b. as other comprehensive income (G/L) C. an offset to the liability for past service cost. d. as accumulated other comprehensive income (PSC).arrow_forward
- Question 11 of 20 View Policies Current Attempt in Progress The computation of pension expense includes all the following except O service cost component measured using current salary levels. O expected/actual return on plan assets. O interest on projected benefit obligation. O amortization of prior service cost.arrow_forwardQuestion 13 Pension expense is decreased by: A- Amortization of prior service cost. B- Amortization of net gain. C- Benefits paid to retired employees. D- Prior service cost. O A O B O Darrow_forward3. In a pension plan no more than 10% of the plan assets can be invested in employer securities. a. True b. Falsearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you