Pension plan : This is the plan devised by corporations to pay the employees an income after their retirement, in the form of pension. Projected benefit obligation (PBO) : This is the estimated present value of future retirement benefits, accumulated based on the future compensation levels. To mention : The changes in PBO for the qualified plans, for Corporation T, for the years ended January 30, 2016 (2015) and January 31, 2015 (2014)

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Answer 1

Question

Chapter 17, Problem 1CCTC

(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.

Projected benefit obligation (PBO): This is the estimated present value of future retirement benefits, accumulated based on the future compensation levels.

To mention: The changes in PBO for the qualified plans, for Corporation T, for the years ended January 30, 2016 (2015) and January 31, 2015 (2014)

(2)

To determine

Plan assets: The assets which are used to satisfy the postretirement obligation, are held as a pension fund by the trustee, to invest the employer contributions, accumulate the earnings on investments, and pay the contributions plus earnings to the retired employees, are referred to as plan assets.

To mention: The changes in plan assets for the qualified plans, for Corporation T, for the years ended January 30, 2016 (2015) and January 31, 2015 (2014)

(3)

To determine

Funded status: The net difference of the total of projected benefit obligation (PBO) and pension plan assets are referred to as funded status. If the balance of PBO is more than plan assets, the difference is referred to as underfunded status, and reported as net pension liability on the balance sheet. If the balance of plan assets is more than PBO, the difference is referred to as overfunded status, and reported as net pension asset on the balance sheet.

To indicate: Whether the pension plan of Corporation T are underfunded or overfunded, for the years ended January 30, 2016 (2015) and January 31, 2015 (2014)

(4)

To determine

Pension expense: Pension expense is an expense to the employer paid as compensation after the completion of services performed by the employees.

Pension expense includes the following components:

Service cost

Interest cost

Expected return on plan assets

Amortization of prior service cost

Amortization of net loss or net gain

To indicate: The components of pension expense for Corporation T, for the years ended January 30, 2016 (2015), January 31, 2015 (2014), and February 1,2014 (2013)

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QUESTION 3 Bacon Bad is a national diner that has set up a defined benefit pension plan for its employees. The company uses IFRS and has provided you with the following information pertaining to its pension plan: Pension obligation, December 31,2021 - $6854203 Plan assets, December 31, 2021 - $5906519 Interest rate on pension obligations - 3% Current service cost for the year (accrued at the end of the year) - $598059 Improvement in pension plan, effective on January 1, 2022 - $62000 Actuarial gain on change in assumptions - $0 Expected retum on plan assets -3% of plan assets Actual return on plan assets - $271186 Amounts remitted by employer to pension trust on January 1,2022 - $668416 Payments we do not need payment to retiree

Question 11 The following data are for the pension plan for the employees of Cullumber Company. 1/1/20 12/31/20 12/31/21 Accumulated benefit obligation $ 5400000 $ 5410000 $ 6850000 Projected benefit obligation 5560000 5770000 7530000 Plan assets (at fair value) 4600000 6230000 6780000 AOCL – net loss 0 975000 1000000 Settlement rate (for year) 9% 10% Expected rate of return (for year) 9% 8% Cullumber’s contribution was $861000 in 2021 and benefits paid were $751000. Cullumber estimates that the average remaining service life is 15 years.The actual return on plan assets in 2021 was $550000. $360000. $440000. $430000.

Exercise 17-5 (Algo) Determine pension plan assets [LO17-4] The following data relate to Ramesh Company's defined benefit pension plan: ($ in millions) $790 79 Plan assets at fair value, January 1 Expected return on plan assets Actual return on plan assets Contributions to the pension fund (end of year) Amortization of net loss Pension benefits paid (end of year) Pension expense 63 138 16 24 110 Required: Determine the amount of pension plan assets at fair value on December 31. (Enter your answers in millions. Amounts to be c should be indicated with a minus sign.) Answer is complete but not entirely correct. Pension Plan Assets 790 Beginning of the year Next

Answer 2

Question

Chapter 17, Problem 1CCTC

(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.

Projected benefit obligation (PBO): This is the estimated present value of future retirement benefits, accumulated based on the future compensation levels.

To mention: The changes in PBO for the qualified plans, for Corporation T, for the years ended January 30, 2016 (2015) and January 31, 2015 (2014)

(2)

To determine

Plan assets: The assets which are used to satisfy the postretirement obligation, are held as a pension fund by the trustee, to invest the employer contributions, accumulate the earnings on investments, and pay the contributions plus earnings to the retired employees, are referred to as plan assets.

To mention: The changes in plan assets for the qualified plans, for Corporation T, for the years ended January 30, 2016 (2015) and January 31, 2015 (2014)

(3)

To determine

Funded status: The net difference of the total of projected benefit obligation (PBO) and pension plan assets are referred to as funded status. If the balance of PBO is more than plan assets, the difference is referred to as underfunded status, and reported as net pension liability on the balance sheet. If the balance of plan assets is more than PBO, the difference is referred to as overfunded status, and reported as net pension asset on the balance sheet.

To indicate: Whether the pension plan of Corporation T are underfunded or overfunded, for the years ended January 30, 2016 (2015) and January 31, 2015 (2014)

(4)

To determine

Pension expense: Pension expense is an expense to the employer paid as compensation after the completion of services performed by the employees.

Pension expense includes the following components:

Service cost

Interest cost

Expected return on plan assets

Amortization of prior service cost

Amortization of net loss or net gain

To indicate: The components of pension expense for Corporation T, for the years ended January 30, 2016 (2015), January 31, 2015 (2014), and February 1,2014 (2013)

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Answer 3

Question

Chapter 17, Problem 1CCTC

(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.

Projected benefit obligation (PBO): This is the estimated present value of future retirement benefits, accumulated based on the future compensation levels.

To mention: The changes in PBO for the qualified plans, for Corporation T, for the years ended January 30, 2016 (2015) and January 31, 2015 (2014)

(2)

To determine

Plan assets: The assets which are used to satisfy the postretirement obligation, are held as a pension fund by the trustee, to invest the employer contributions, accumulate the earnings on investments, and pay the contributions plus earnings to the retired employees, are referred to as plan assets.

To mention: The changes in plan assets for the qualified plans, for Corporation T, for the years ended January 30, 2016 (2015) and January 31, 2015 (2014)

(3)

To determine

Funded status: The net difference of the total of projected benefit obligation (PBO) and pension plan assets are referred to as funded status. If the balance of PBO is more than plan assets, the difference is referred to as underfunded status, and reported as net pension liability on the balance sheet. If the balance of plan assets is more than PBO, the difference is referred to as overfunded status, and reported as net pension asset on the balance sheet.

To indicate: Whether the pension plan of Corporation T are underfunded or overfunded, for the years ended January 30, 2016 (2015) and January 31, 2015 (2014)

(4)

To determine

Pension expense: Pension expense is an expense to the employer paid as compensation after the completion of services performed by the employees.

Pension expense includes the following components:

Service cost

Interest cost

Expected return on plan assets

Amortization of prior service cost

Amortization of net loss or net gain

To indicate: The components of pension expense for Corporation T, for the years ended January 30, 2016 (2015), January 31, 2015 (2014), and February 1,2014 (2013)

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Answer 4

Question

Chapter 17, Problem 1CCTC

(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.

Projected benefit obligation (PBO): This is the estimated present value of future retirement benefits, accumulated based on the future compensation levels.

To mention: The changes in PBO for the qualified plans, for Corporation T, for the years ended January 30, 2016 (2015) and January 31, 2015 (2014)

(2)

To determine

Plan assets: The assets which are used to satisfy the postretirement obligation, are held as a pension fund by the trustee, to invest the employer contributions, accumulate the earnings on investments, and pay the contributions plus earnings to the retired employees, are referred to as plan assets.

To mention: The changes in plan assets for the qualified plans, for Corporation T, for the years ended January 30, 2016 (2015) and January 31, 2015 (2014)

(3)

To determine

Funded status: The net difference of the total of projected benefit obligation (PBO) and pension plan assets are referred to as funded status. If the balance of PBO is more than plan assets, the difference is referred to as underfunded status, and reported as net pension liability on the balance sheet. If the balance of plan assets is more than PBO, the difference is referred to as overfunded status, and reported as net pension asset on the balance sheet.

To indicate: Whether the pension plan of Corporation T are underfunded or overfunded, for the years ended January 30, 2016 (2015) and January 31, 2015 (2014)

(4)

To determine

Pension expense: Pension expense is an expense to the employer paid as compensation after the completion of services performed by the employees.

Pension expense includes the following components:

Service cost

Interest cost

Expected return on plan assets

Amortization of prior service cost

Amortization of net loss or net gain

To indicate: The components of pension expense for Corporation T, for the years ended January 30, 2016 (2015), January 31, 2015 (2014), and February 1,2014 (2013)

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Answer 5

Chapter 17, Problem 1CCTC

(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.

Projected benefit obligation (PBO): This is the estimated present value of future retirement benefits, accumulated based on the future compensation levels.

To mention: The changes in PBO for the qualified plans, for Corporation T, for the years ended January 30, 2016 (2015) and January 31, 2015 (2014)

(2)

To determine

Plan assets: The assets which are used to satisfy the postretirement obligation, are held as a pension fund by the trustee, to invest the employer contributions, accumulate the earnings on investments, and pay the contributions plus earnings to the retired employees, are referred to as plan assets.

To mention: The changes in plan assets for the qualified plans, for Corporation T, for the years ended January 30, 2016 (2015) and January 31, 2015 (2014)

(3)

To determine

Funded status: The net difference of the total of projected benefit obligation (PBO) and pension plan assets are referred to as funded status. If the balance of PBO is more than plan assets, the difference is referred to as underfunded status, and reported as net pension liability on the balance sheet. If the balance of plan assets is more than PBO, the difference is referred to as overfunded status, and reported as net pension asset on the balance sheet.

To indicate: Whether the pension plan of Corporation T are underfunded or overfunded, for the years ended January 30, 2016 (2015) and January 31, 2015 (2014)

(4)

To determine

Pension expense: Pension expense is an expense to the employer paid as compensation after the completion of services performed by the employees.

Pension expense includes the following components:

Service cost

Interest cost

Expected return on plan assets

Amortization of prior service cost

Amortization of net loss or net gain

To indicate: The components of pension expense for Corporation T, for the years ended January 30, 2016 (2015), January 31, 2015 (2014), and February 1,2014 (2013)

Answer 6

Chapter 17, Problem 1CCTC

(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.

Projected benefit obligation (PBO): This is the estimated present value of future retirement benefits, accumulated based on the future compensation levels.

To mention: The changes in PBO for the qualified plans, for Corporation T, for the years ended January 30, 2016 (2015) and January 31, 2015 (2014)

Answer 7

Chapter 17, Problem 1CCTC

(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.

Projected benefit obligation (PBO): This is the estimated present value of future retirement benefits, accumulated based on the future compensation levels.

To mention: The changes in PBO for the qualified plans, for Corporation T, for the years ended January 30, 2016 (2015) and January 31, 2015 (2014)

Answer 8

(2)

To determine

Plan assets: The assets which are used to satisfy the postretirement obligation, are held as a pension fund by the trustee, to invest the employer contributions, accumulate the earnings on investments, and pay the contributions plus earnings to the retired employees, are referred to as plan assets.

To mention: The changes in plan assets for the qualified plans, for Corporation T, for the years ended January 30, 2016 (2015) and January 31, 2015 (2014)

Answer 9

(2)

To determine

Plan assets: The assets which are used to satisfy the postretirement obligation, are held as a pension fund by the trustee, to invest the employer contributions, accumulate the earnings on investments, and pay the contributions plus earnings to the retired employees, are referred to as plan assets.

To mention: The changes in plan assets for the qualified plans, for Corporation T, for the years ended January 30, 2016 (2015) and January 31, 2015 (2014)

Answer 10

(3)

To determine

Funded status: The net difference of the total of projected benefit obligation (PBO) and pension plan assets are referred to as funded status. If the balance of PBO is more than plan assets, the difference is referred to as underfunded status, and reported as net pension liability on the balance sheet. If the balance of plan assets is more than PBO, the difference is referred to as overfunded status, and reported as net pension asset on the balance sheet.

To indicate: Whether the pension plan of Corporation T are underfunded or overfunded, for the years ended January 30, 2016 (2015) and January 31, 2015 (2014)

Answer 11

(3)

To determine

Funded status: The net difference of the total of projected benefit obligation (PBO) and pension plan assets are referred to as funded status. If the balance of PBO is more than plan assets, the difference is referred to as underfunded status, and reported as net pension liability on the balance sheet. If the balance of plan assets is more than PBO, the difference is referred to as overfunded status, and reported as net pension asset on the balance sheet.

To indicate: Whether the pension plan of Corporation T are underfunded or overfunded, for the years ended January 30, 2016 (2015) and January 31, 2015 (2014)

Answer 12

(4)

To determine

Pension expense: Pension expense is an expense to the employer paid as compensation after the completion of services performed by the employees.

Pension expense includes the following components:

Service cost

Interest cost

Expected return on plan assets

Amortization of prior service cost

Amortization of net loss or net gain

To indicate: The components of pension expense for Corporation T, for the years ended January 30, 2016 (2015), January 31, 2015 (2014), and February 1,2014 (2013)

Answer 13

(4)

To determine

Pension expense: Pension expense is an expense to the employer paid as compensation after the completion of services performed by the employees.

Pension expense includes the following components:

Service cost

Interest cost

Expected return on plan assets

Amortization of prior service cost

Amortization of net loss or net gain

To indicate: The components of pension expense for Corporation T, for the years ended January 30, 2016 (2015), January 31, 2015 (2014), and February 1,2014 (2013)

Answer 14

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Answer 15

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Answer 17

Ch. 17 - Prob. 17.1Q Ch. 17 - Prob. 17.2Q Ch. 17 - Prob. 17.3Q Ch. 17 - What is the vested benefit obligation?Ch. 17 - Prob. 17.5Q Ch. 17 - Prob. 17.6Q Ch. 17 - Name three events that might change the balance of...Ch. 17 - Prob. 17.8Q Ch. 17 - Prob. 17.9Q Ch. 17 - Prob. 17.10Q

Solution Summary: The author explains the changes in pension plan assets for Corporation T for the years ended January 30, 2016 (2015) and January 31, 2015.

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Chapter 17 Solutions