1. Explanation Pension plan: Pension plan is the plan devised by corporations to pay the employees an income after their retirement, in the form of pension. Calculate the amount of pension expense of Company C for 2019: Particulars 2019 2020 Amounts in ($) Amounts in ($) Service cost $200,000 $215,000 Add: Interest cost (1) $16,200 $35,658 Less: Expected return on plan assets (2) $14,400 $32,512 Pension expense for 2019 $201,800 $218,146 Table (1) Working note (1): Calculate the interest cost for 2019: Interest cost = Projected benefit obligtion × Discount rate =$180,000 × 9 100 = $ 16 , 200 Calculate the value of expected return on plan asset for 2019 2. To determine Prepare the necessary journal entries of Company C to record the pension expense for 2019 and 2020. 3. To determine Describe the way in which the pension expenses would be affected, if the actual return on plan assets was greater than the expected return in 2019.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN: 9781337788281

Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher: Cengage Learning

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Employee Benefits

In an organization employees are the most important resource and most important asset. They can lead an organization to the sky or can be the reason for unsuccessful of business. Therefore, it is very much important that employees of an organization shou…

Question

Chapter 19, Problem 7E

To determine

Calculate the amount of pension expense of Company C for 2019 and 2020.

To determine

Prepare the necessary journal entries of Company C to record the pension expense for 2019 and 2020.

To determine

Describe the way in which the pension expenses would be affected, if the actual return on plan assets was greater than the expected return in 2019.

Expert Solution & Answer

Chapter 19 Solutions

Intermediate Accounting: Reporting And Analysis

Ch. 19 - Prob. 1GI Ch. 19 - Prob. 2GI Ch. 19 - Prob. 3GI Ch. 19 - Prob. 4GI Ch. 19 - Prob. 5GI Ch. 19 - Prob. 6GI Ch. 19 - Prob. 7GI Ch. 19 - Prob. 8GI Ch. 19 - Prob. 9GI Ch. 19 - Prob. 10GI

Ch. 19 - Prob. 11GI Ch. 19 - Prob. 12GI Ch. 19 - Prob. 13GI Ch. 19 - Prob. 14GI Ch. 19 - Prob. 15GI Ch. 19 - Prob. 16GI Ch. 19 - Prob. 17GI Ch. 19 - Prob. 18GI Ch. 19 - Prob. 19GI Ch. 19 - Prob. 20GI Ch. 19 - Prob. 21GI Ch. 19 - Prob. 22GI Ch. 19 - Prob. 23GI Ch. 19 - The actuarial present value of all the benefits...Ch. 19 - Prob. 2MC Ch. 19 - Prob. 3MC Ch. 19 - Prob. 4MC Ch. 19 - Prob. 5MC Ch. 19 - Prob. 6MC Ch. 19 - Which of the following is not a component of...Ch. 19 - Prob. 8MC Ch. 19 - Prob. 9MC Ch. 19 - Prob. 10MC Ch. 19 - Prob. 1RE Ch. 19 - Prob. 2RE Ch. 19 - Pinecone Company has plan assets of 500,000 at the...Ch. 19 - Prob. 4RE Ch. 19 - Prob. 5RE Ch. 19 - Prob. 6RE Ch. 19 - Prob. 7RE Ch. 19 - Prob. 8RE Ch. 19 - Given the following information for Tyler Companys...Ch. 19 - At the beginning of Year 1, Cactus Company has...Ch. 19 - Prob. 11RE Ch. 19 - Prob. 1E Ch. 19 - Prob. 2E Ch. 19 - Prob. 3E Ch. 19 - Prob. 4E Ch. 19 - Prob. 5E Ch. 19 - Prob. 6E Ch. 19 - Prob. 7E Ch. 19 - Prob. 8E Ch. 19 - Prob. 9E Ch. 19 - Prob. 10E Ch. 19 - Prob. 11E Ch. 19 - Prob. 12E Ch. 19 - Prob. 13E Ch. 19 - Refer to the information provided in E19-13....Ch. 19 - Prob. 15E Ch. 19 - Prob. 16E Ch. 19 - Prob. 1P Ch. 19 - Prob. 2P Ch. 19 - Prob. 3P Ch. 19 - Prob. 4P Ch. 19 - Prob. 5P Ch. 19 - Prob. 6P Ch. 19 - Prob. 7P Ch. 19 - Prob. 8P Ch. 19 - Prob. 9P Ch. 19 - Prob. 10P Ch. 19 - Prob. 11P Ch. 19 - Prob. 12P Ch. 19 - Prob. 1C Ch. 19 - Prob. 2C Ch. 19 - Prob. 3C Ch. 19 - Prob. 4C Ch. 19 - Prob. 5C Ch. 19 - Prob. 6C Ch. 19 - Prob. 7C Ch. 19 - Prob. 9C

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