EBK INTERMEDIATE ACCOUNTING
3rd Edition
ISBN: 9780136946465
Author: SANNELLA
Publisher: VST
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Question
Chapter 19, Problem 19.11E
a.
To determine
The value of total pension cost for the year.
Given information:
Fair value of plan assets at the beginning is $954,500.
Value of PBO at the beginning is $1,020,340.
Service cost is $81,500.
Settlement rate is 10%.
Expected rate on plan assets is 16%.
Actual return on plan assets is $123,400.
Contribution for the year is $67,480.
Benefit paid for the year is $47,440.
AOCI related to prior service cost at the beginning is $65,840.
Amortization of prior service cost is $15,500.
Actuarial loss is $78,625.
Average remaining service life of the employee base is 10 years.
b.
To determine
The value of closing balance of plan assets and PBO and indicate the funded status of the plan.
Given information:
Fair value of plan assets at the beginning is $954,500.
Value of PBO at the beginning is $1,020,340.
Service cost is $81,500.
Settlement rate is 10%.
Expected rate on plan assets is 16%.
Actual return on plan assets is $123,400.
Contribution for the year is $67,480.
Benefit paid for the year is $47,440.
AOCI related to prior service cost at the beginning is $65,840.
Amortization of prior service cost is $15,500.
Actuarial loss is $78,625.
Average remaining service life of the employee base is 10 years.
c.
To determine
The value of closing balance for accumulated other comprehensive income.
Given information:
Fair value of plan assets at the beginning is $954,500.
Value of PBO at the beginning is $1,020,340.
Service cost is $81,500.
Settlement rate is 10%.
Expected rate on plan assets is 16%.
Actual return on plan assets is $123,400.
Contribution for the year is $67,480.
Benefit paid for the year is $47,440.
AOCI related to prior service cost at the beginning is $65,840.
Amortization of prior service cost is $15,500.
Actuarial loss is $78,625.
Average remaining service life of the employee base is 10 years.
d.
To determine
To prepare: The
Given information:
Fair value of plan assets at the beginning is $954,500.
Value of PBO at the beginning is $1,020,340.
Service cost is $81,500.
Settlement rate is 10%.
Expected rate on plan assets is 16%.
Actual return on plan assets is $123,400.
Contribution for the year is $67,480.
Benefit paid for the year is $47,440.
AOCI related to prior service cost at the beginning is $65,840.
Amortization of prior service cost is $15,500.
Actuarial loss is $78,625.
Average remaining service life of the employee base is 10 years.
e.
To determine
The reconciliation of the closing balance in accumulated other comprehensive income.
Given information:
Fair value of plan assets at the beginning is $954,500.
Value of PBO at the beginning is $1,020,340.
Service cost is $81,500.
Settlement rate is 10%.
Expected rate on plan assets is 16%.
Actual return on plan assets is $123,400.
Contribution for the year is $67,480.
Benefit paid for the year is $47,440.
AOCI related to prior service cost at the beginning is $65,840.
Amortization of prior service cost is $15,500.
Actuarial loss is $78,625.
Average remaining service life of the employee base is 10 years.
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Rosaria Co. sponsors a defined benefit pension plan. For the current year ended December 31, thefollowing information relevant to the plan has been accumulated:Defined benefit obligation, 1/1 P11,250,000Fair value of plan assets, 1/1 10,500,000Current service cost 1,050,000Past service cost 2,200,000Actual return on plan assets 600,000Decrease in defined benefit obligation due tochanges in actuarial assumptions300,000Discount rate 8%Requirements:1. In the working papers computations, what balance of plan assets will be determined?2. In the working papers computations, what balance of benefit obligation will be determined?3. Calculate the amount that the entity would recognize in profit or loss for the year in accordancewith the revised PAS 19.4. Calculate the amount that the entity would recognize in other comprehensive income for theyear in accordance with the revised PAS 19.
The following information is related to the defined benefit pension plan of Havana for the year:
Service cost
Contributions to pension plan
Benefits paid to retirees
Plan assets (fair value), January 1
Plan assets (fair value), December 31
Actual return on plan assets
PBO, January 1
PBO, December 31
Discount rate
Long-term expected return on plan assets
$ 65,000
117,000
156,000
643,000
760,000
156,000
915,000
915,500
3:09
10%
9%
Assuming no other relevant data exist, what is the pension expense for the year?
Multiple Choice
$96,630.
$156,500.
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The following data relate to Ramesh Company's defined benefit pension plan:
($ in millions)
$690
69
55
118
13
20
90
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
Required:
Determine the amount of pension plan assets at fair value on December 31. (Enter your answers in millions. Amounts to be deducted
should be indicated with a minus sign.)
Pension Plan Assets
Beginning of the year
End of the year
Chapter 19 Solutions
EBK INTERMEDIATE ACCOUNTING
Ch. 19 - What is the allocation period used to expense...Ch. 19 - How do companies account for stock-based...Ch. 19 - Do companies with equity-based compensation plans...Ch. 19 - When accounting for employee stock options, will a...Ch. 19 - Prob. 19.5QCh. 19 - Prob. 19.6QCh. 19 - Prob. 19.7QCh. 19 - Prob. 19.8QCh. 19 - Prob. 19.9QCh. 19 - Prob. 19.10Q
Ch. 19 - Prob. 19.1MCCh. 19 - Prob. 19.2MCCh. 19 - Prob. 19.3MCCh. 19 - Prob. 19.4MCCh. 19 - Prob. 19.5MCCh. 19 - Prob. 19.6MCCh. 19 - Prob. 19.7MCCh. 19 - Prob. 19.8MCCh. 19 - Prob. 19.1BECh. 19 - Prob. 19.2BECh. 19 - Prob. 19.3BECh. 19 - Prob. 19.4BECh. 19 - Prob. 19.5BECh. 19 - Prob. 19.6BECh. 19 - Employee Stock Options, Liability-Classified...Ch. 19 - Prob. 19.8BECh. 19 - Prob. 19.9BECh. 19 - Prob. 19.10BECh. 19 - Prob. 19.11BECh. 19 - Prob. 19.12BECh. 19 - Prob. 19.13BECh. 19 - Prob. 19.14BECh. 19 - Prob. 19.15BECh. 19 - Prob. 19.16BECh. 19 - Prob. 19.17BECh. 19 - Prob. 19.18BECh. 19 - Prob. 19.19BECh. 19 - Prob. 19.20BECh. 19 - Prob. 19.21BECh. 19 - Prob. 19.22BECh. 19 - Prob. 19.23BECh. 19 - Prob. 19.24BECh. 19 - Prob. 19.25BECh. 19 - Prob. 19.26BECh. 19 - Prob. 19.27BECh. 19 - Prob. 19.28BECh. 19 - Prob. 19.1ECh. 19 - Prob. 19.2ECh. 19 - Employee Stock Options. Equity-Classified Awards....Ch. 19 - Prob. 19.4ECh. 19 - Prob. 19.5ECh. 19 - Prob. 19.6ECh. 19 - Prob. 19.7ECh. 19 - Prob. 19.8ECh. 19 - Prob. 19.9ECh. 19 - Prob. 19.10ECh. 19 - Prob. 19.11ECh. 19 - Prob. 19.12ECh. 19 - Prob. 19.13ECh. 19 - Prob. 19.14ECh. 19 - Prob. 19.15ECh. 19 - Prob. 19.16ECh. 19 - Prob. 19.1PCh. 19 - Prob. 19.2PCh. 19 - Prob. 19.3PCh. 19 - Prob. 19.4PCh. 19 - Prob. 19.5PCh. 19 - Prob. 19.6PCh. 19 - Prob. 19.7PCh. 19 - Prob. 19.8PCh. 19 - Prob. 19.9PCh. 19 - Prob. 19.10PCh. 19 - Prob. 19.11PCh. 19 - Prob. 19.12PCh. 19 - Prob. 1JCCh. 19 - Prob. 2FSCCh. 19 - Prob. 1SSCCh. 19 - Prob. 2SSCCh. 19 - Basis for Conclusions Case 1: Are Employee Stock...Ch. 19 - Prob. 2BCC
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