Intermediate Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (2nd Edition)
2nd Edition
ISBN: 9780134833118
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Question
Chapter 19, Problem 19.15E
a.
To determine
The value of total pension cost for the year.
Given information:
Fair value of plan assets at the beginning is $1,000,500.
Value of PBO at the beginning is $945,000.
Service cost is $400,000.
Expected and actual return on plan assets is $82,500.
Contribution for the year is $300,000.
Amortization of prior service cost is $80,000.
b.
To determine
To prepare: The
Given information:
Fair value of plan assets at the beginning is $1,000,500.
Value of PBO at the beginning is $945,000.
Service cost is $400,000.
Expected and actual return on plan assets is $82,500.
Contribution for the year is $300,000.
Amortization of prior service cost is $80,000.
c.
To determine
The value of closing balance of plan assets, PBO, AOCI and funded status of the plan.
Given information:
Fair value of plan assets at the beginning is $1,000,500.
Value of PBO at the beginning is $945,000.
Service cost is $400,000.
Expected and actual return on plan assets is $82,500.
Contribution for the year is $300,000.
Amortization of prior service cost is $80,000.
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Wildhorse Company provides the following information about its defined benefit pension plan for the year 2025.
Service cost
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Actual and expected return on plan assets
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Plan assets at January 1, 2025
Projected benefit obligation at January 1, 2025
Accumulated OCI (PSC) at January 1, 2025
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Compute the pension expense for the year 2025.
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$89,400
105,700
10,800
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640,200
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Computing Pension Expense, Gain/Loss Amortization, PBO, and Plan Asset Balances
The following data relate to a defined benefit pension plan for Hollistir Co.
Fair value of plan assets, Jan. 1, 2020
$9,600
PBO Jan. 1, 2020, not including any items below
12,000
PSC from amendment dated Jan. 1, 2020, (10 years is the amortization period)
6,000
Gain from change in actuarial assumptions, computed as of Jan. 1, 2020
1,800
Actual return on plan assets, 2020
1,200
Contributions to plan assets in 2020
2,400
Benefits paid to retirees in 2020
3,000
Service cost for 2020
5,400
Discount rate
8%
Expected rate of return on plan assets
10%
Required
a. Compute pension expense for 2020. Hollistir amortizes the full pension gain/loss over average service life of 15 years, using the straight-line method.
Pension expense, 2020
b. Compute PBO at December 31, 2020.
PBO, Dec. 31, 2020
c. Compute fair value of plan assets at December 31, 2020.
Fair…
Splish Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2020
and 2021.
Plan assets (fair value), December 31
Projected benefit obligation, January 1
Pension asset/liability, January 1
Prior service cost, January 1
Service cost
Actual and expected return on plan assets
Amortization of prior service cost
Contributions (funding)
Accumulated benefit obligation, December 31
Interest/settlement rate
2020
$712,980
714,000
142,800 Cr.
255,000
61,200
24,480
10,200
117,300
510,000
8%
2021
$865,980
816,000
?
244,800
91,800
30,600
12,240
122,400
561,000
8 %
Chapter 19 Solutions
Intermediate Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (2nd Edition)
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. 19.12BECh. 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. 19.6ECh. 19 - Prob. 19.7ECh. 19 - Prob. 19.8ECh. 19 - Prob. 19.9ECh. 19 - Prob. 19.10ECh. 19 - Prob. 19.11ECh. 19 - Prob. 19.13ECh. 19 - Prob. 19.14ECh. 19 - Prob. 19.15ECh. 19 - Prob. 19.1PCh. 19 - Prob. 19.2PCh. 19 - Prob. 19.3PCh. 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. 1FSCCh. 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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