INTERMEDIATE ACCOUNTING
3rd Edition
ISBN: 9780136946694
Author: GORDON
Publisher: RENT PEARS
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Question
Chapter 19, Problem 19.7MC
To determine
To identify: The correct option.
Given information:
Market related value of assets as on December 31, Year 4 is $5,160,000.
Unrecognized net losses as on December 31, Year 4 is $720,000.
Average remaining service life is 16 years.
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Sunshine company has a defined benefit pension plan. Using the data available related to
pension, calculate the amount of amortization of the net loss or gain that should be included
as a component of pension expense for the current year?
Average remaining service period of active employees
Net gain, January 1
PBO, January 1
Plan assets, January 1
12 years
$214,600
$1,630,000
S1,930,000
a. $21,600
b. $1,800
c. $51,600
d. $4,300
The following information relates to the pension plan for the employees of RR Co.:
1/1/19
12/31/19
12/31/20
Defined benefit obligation
P5,580,000
P5,976,000
P8,004,000
Fair value of plan assets
5,100,000
6,240,000
6,888,000
Net (gain) or loss
0
(164,000)
(96,000)
Discount rate (for year)
11%
11%
RR estimates that the average remaining service life is 16 years. RR's contribution was P756,000 in 2020 and benefits paid were P564,000.
How much is the gain or loss on plan assets in 2020? (Note: If it is a loss, use negative sign before the number. Example: -1,000.)
- The following information relates to the defined benefit
pension plan of the McDonald Company for the
year ending
December 31, 2002:
Present value of defined benefit obligation, Jan. 1
4,600,000
Present value of defined benefit obligation, Dec. 31
Fair value of plan assets, January 1
Fair value of plan assets, December 31
Expected return on plan assets
Amortization of deferred gain
Employer contributions
Benefits paid to retirees
4,729,000
5,035,000
5,565,000
450,000
32,500
425,000
390,000
Discount rate
10%
The return on plan assets for the year is
a. 105,000.
(Adapted)
d. 530,000.
b. 495,000.
c. 503,500.
Chapter 19 Solutions
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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