INTERMEDIATE ACCT.-MYLAB COMBO ACCESS
3rd Edition
ISBN: 9780137391707
Author: GORDON
Publisher: PEARSON
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Question
Chapter 19, Problem 19.13E
a.
To determine
The value of total pension cost for the year.
b.
To determine
The value of closing balance of plan assets and PBO and indicate the funded status of the plan.
c.
To determine
The reconciliation of the closing balance in accumulated other comprehensive income of current year.
d.
To determine
To prepare: The
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Pension data for Barry Financial Services Incorporated include the following:
Discount rate, 7%
Expected return on plan assets, 12%
Actual return on plan assets, 11%
Service cost, 2024
January 1, 2024:
Projected benefit obligation
Accumulated benefit obligation
Plan assets (fair value)
Prior service cost- AOCI (2024 amortization, $50)
Net gain- AOCI (2024 amortization, $12)
There were no changes in actuarial assumptions.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
December 31, 2024:
Cash contributions to pension fund, December 31, 2024
Benefit payments to retirees, December 31, 2024
Required:
1. Determine pension expense for 2024.
2. Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for 2024.
Pension expense
($ in thousands)
$
$ 480
0.0
3,150
2,850
3,250
410
500
Determine pension expense for 2024.
Note: Amounts to be deducted should be indicated with a minus sign.…
The following information relates to the defined benefit pension plan of Nelson, Inc.
Projected benefit obligation
Fair value of plan assets
Accumulated OCI-net actuarial gain
Settlement rate (for year)
Expected rate of return (for year)
The interest cost for 2020 is
$158,640
$211,520
12/31/19
2,644,000
3,118,000
432,000
O $240,120
O $280,140
O None of the above
6%
8%
12/31/20
4,002,000
3,328,000
480,000
For 2020, Nelson estimates that the average remaining service life of its current employees is 8 years. Nelson's contribution to the plan was
$364,000 in 2020 and benefits paid to retirees were $276,000,
6%
7%
At the beginning of current year, Maximus Company hada
projected benefit obligation of P10,000,000 and a pension
The entity provided the following information related to the
Problem 18-20 (IAA)
fund with a fair value of P9,200,000.
pension plan during the current year:
Current service cost
Actual return on the pension fund
Benefits paid to retirees
Contribution to the pension fund
Discount rate
Expected return on pension fund
1,200,000
250,000
1,100,000
1,050,000
10%
1. What is the pension expense for the current year?
a. 1,272,000
b. 2,100,000
c. 1,850,000
d. 1,050,000
2. What is the remeasurement gain or loss for the current
year?
a. 578,000 gain
b. 578,000 loss
c. 250,000 gain
d. 250,000 loss
3. What is the pension asset or liability at year-end?
a. 1,600,000 liability
b. 1,600,000 asset
800,000 liability
d.
c.
800,000 asset
Chapter 19 Solutions
INTERMEDIATE ACCT.-MYLAB COMBO ACCESS
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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- 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. 2 of 16 Next > < Prev Mc Graw Hill MacBook Airarrow_forwardPension data for Sterling Properties include the following: Service cost, 2024 Projected benefit obligation, January 1, 2024 Plan assets (fair value), January 1, 2024 Prior service cost-AOCI (2024 amortization, $8) Net loss-AOCI (2024 amortization, $1) Interest rate, 5% Expected return on plan assets, 9% Actual return on plan assets, 10% ($ in thousands) $ 127 560 600 92 113 Required: Determine pension expense for 2024. Note: Enter your answers in thousands (i.e., 10,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.arrow_forwardPension data for Sterling Properties include the following: Service cost, 2021 Projected benefit obligation, January 1, 2021 Plan assets (fair value), January 1, 2021 Prior service cost-AOCI (2021 amortization, $8) Net loss-AOCI (2021 amortization, $1) Interest rate, 8% Expected return on plan assets, 12% Actual return on plan assets, 13% Service cost Interest cost Required: Determine pension expense for 2021. (Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.) Pension Expense Expected return on plan assets Amortization of prior service cost Amortization of net loss Pension expense $ ($ in thousands) $ 117 0 600 700 87 108arrow_forward
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