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Intermediate Accounting - Myaccountinglab - Pearson Etext Access Card Student Value Edition
1st Edition
ISBN: 9780134047430
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Question
Chapter 19, Problem 19.5P
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.
c.
To determine
The value of the closing balance in accumulated other comprehensive income of current year.
d.
To determine
To prepare: The
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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 Dreamworld Company for the year ended 12/31/2020:
Service cost
$ 60,000
110,000
150,000
640,000
750,000
150,000
900,000
960,000
Contributions to pension plan
Benefits paid to retirees
Plan assets (fair value), January 11
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
Prior Service Cost 1/1
$ 700,000
Average remaining years of service
Assuming no other relevant data exist.
Required:
10 years
10%
9%
A. Calculate the company's pension expense for 2020.
B. Make journal entry (entries) related to the plan at 12/31/2020.
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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Chapter 19 Solutions
Intermediate Accounting - Myaccountinglab - Pearson Etext Access Card Student Value 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. 19.9BECh. 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. 19.1ECh. 19 - Prob. 19.2ECh. 19 - Prob. 19.3ECh. 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. 19.11ECh. 19 - Prob. 19.12ECh. 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. 1FSACCh. 19 - Prob. 2FSACCh. 19 - Prob. 1SSCCh. 19 - Prob. 2SSCCh. 19 - Prob. 3SSCCh. 19 - Prob. 4SSCCh. 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 penslon plan of Melissa Larson Company 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 $ 90,000 140,000 110,000 540,000 650,000 80,000 800,000 870,000 Actual return on plan assets PBO, January 1 PBO, December 31 Discount rate 10% Long-term expected return on plan assets 9 % Assuming no other relevant data exist, what is the pension expense for the year? Multiple Choice $90,000. $121,400. 13 of 39 Next > Prev Show All 7 Question no....pages 15....pdf Question no....pages MacBook Airarrow_forwardBlossom Company provides the following information about its defined benefit pension plan for the year 2020. Service cost  $ 90,600  Contribution to the plan  103,900  Prior service cost amortization  10,100  Actual and expected return on plan assets  63,100  Benefits paid  39,600  Plan assets at January 1, 2020  644,100  Projected benefit obligation at January 1, 2020  710,600  Accumulated OCI (PSC) at January 1, 2020  149,400  Interest/discount (settlement) rate  9 % Compute the pension expense for the year 2020. Pension expense for 2020  $enter the Pension expense for 2020 in dollarsarrow_forwardPension data for Sterling Properties include the following:  ($ in thousands) Service cost, 2021 $ 116  Projected benefit obligation, January 1, 2021  550  Plan assets (fair value), January 1, 2021  600  Prior service cost—AOCI (2021 amortization, $7)  86  Net loss—AOCI (2021 amortization, $2)  107  Interest rate, 6%    Expected return on plan assets, 10%    Actual return on plan assets, 11%      Required:Determine pension expense for 2021. (Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.)arrow_forward
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