Accounting For Governmental And Not For Profit Entities
17th Edition
ISBN: 9781308700441
Author: RECK
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 8, Problem 17.10EP
To determine
Identify the amount that is equal to the current year pension expense.
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Stark Inc. follows IFRS for financial reporting and has established a defined benefit pension plan for employees. Pertinent details for the year ended December 31, 20X5, are as follows: Stark Inc. follows IFRS for financial reporting and has established a defined benefit pension plan for employees. Pertinent details for the year ended December 31, 20X5, are as follows: Stark Inc. follows IFRS for financial reporting and has established a defined benefit pension plan for employees. Pertinent details for the year ended December 31, 20X5, are as follows: Current service cost accrued end of year $52,000 Past service cost accrued beginning of year $10,000 Benefits paid evenly throughout the year $85,000 Discount rate used by actuary 6% Actuarial losses in the year $10,000 Pension obligation as at January 1, 20X5 $650,000 Plan assets as at January 1, 20X5 $625,000 What is the balance of the pension obligation as at December 31, 20X5? a. $671,500 b. $654,050 c. $674,050 d. $673,450
A government makes a contribution to its pension plan in the amount of $10,000 for year 1. The actuarially-determined annual required contribution for year 1 was $13,500. The pension plan paid benefits of $8,200 and refunded employee contributions of $800 for year 1. What is the pension expenditure for the general fund for year 1?
A.) $8,200
B.) $9,000
C.) $10,000
D.) $13,500
A government makes a contribution to its pension plan in the amount of $10,000 for year 1. The
actuarially-determined annual required contribution for year 1 was $12,500. The pension plan
paid benefits of $8,200 and refunded employee contributions of $800 for year 1. What is the
pension expense for the Government-Wide Statements for year 1?
$8,200
$10,000
$12,500
None of above
Chapter 8 Solutions
Accounting For Governmental And Not For Profit Entities
Ch. 8 - Prob. 1QCh. 8 - Identify the different types of trust funds and...Ch. 8 - Prob. 3QCh. 8 - Explain how the financial reporting of fiduciary...Ch. 8 - Prob. 5QCh. 8 - Prob. 6QCh. 8 - Prob. 7QCh. 8 - Prob. 8QCh. 8 - Prob. 9QCh. 8 - Prob. 10Q
Ch. 8 - Prob. 11CCh. 8 - Prob. 12CCh. 8 - Prob. 13CCh. 8 - Prob. 14CCh. 8 - Prob. 16.1EPCh. 8 - Prob. 16.2EPCh. 8 - Prob. 16.3EPCh. 8 - Prob. 16.4EPCh. 8 - Prob. 16.5EPCh. 8 - Prob. 16.6EPCh. 8 - Prob. 16.7EPCh. 8 - Prob. 16.8EPCh. 8 - Prob. 16.9EPCh. 8 - Prob. 16.10EPCh. 8 - Prob. 17.1EPCh. 8 - Prob. 17.2EPCh. 8 - Prob. 17.3EPCh. 8 - Prob. 17.4EPCh. 8 - Prob. 17.5EPCh. 8 - At the date of the creation of the investment...Ch. 8 - The city council of the City of Great Falls...Ch. 8 - The city council of the City of Great Falls...Ch. 8 - Prob. 17.9EPCh. 8 - Prob. 17.10EPCh. 8 - Prob. 18EPCh. 8 - Special Assessment Debt. Residents of Green Acres,...Ch. 8 - Identification of Fiduciary Funds. Following is a...Ch. 8 - Prob. 21EPCh. 8 - Pass-through Agency Funds. Evergreen County acts...Ch. 8 - Fiduciary Financial Statements. Ray County...Ch. 8 - Prob. 24EP
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- The City of Sweetwater maintains an Employees’ Retirement Fund, a single-employer defined benefit plan that provides annuity and disability benefits. The fund is financed by actuarially determined contributions from the city’s General Fund and by contributions from employees. Administration of the retirement fund is handled by General Fund employees, and the retirement fund does not bear any administrative expenses. The Statement of Fiduciary Net Position for the Employees’ Retirement Fund as of July 1, 2019, is shown here: CITY OF SWEETWATER Employees’ Retirement Fund Statement of Fiduciary Net Position As of July 1, 2019 Assets Cash $ 137,000 Accrued Interest Receivable 57,800 Investments, at Fair Value: Bonds 4,506,000 Common Stocks 1,307,000 Total Assets 6,007,800 Liabilities Accounts Payable and Accrued Expenses 351,300 Fiduciary Net Position Restricted for Pensions $ 5,656,500 During the year ended…arrow_forwardThe City of Ronchester has a defined benefit pension plan for its firefighters. How is the amount of pension expense determined that should be recognized in the current year?arrow_forwardplease help mearrow_forward
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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_forwardUse the following information for questions 4 through 6. The following data are for the pension plan for the employees of Lockett Company. 1/1/1412/31/1412/31/15 Accumulated benefit obligation $2,500,000 $2,600,000 $3,400,000 Projected benefit obligation 2,700,000 2,800,000 3,700,000 Plan assets (at fair value) 2,300,000 3,000,000 3,300,000 AOCL – net loss -0- 580,000 500,000 Settlement rate (for year) 10% 9% Expected rate of return (for year) 8% 7% Lockett’s contribution was $420,000 in 2015 and benefits paid were $275,000. Lockett estimates that the average remaining service life is 20 years. 4.The actual return on plan assets in 2015 was a. $300,000. b. $255,000. c. $200,000. d. $155,000. 5.Assume that the actual return on plan assets in 2015 was $245,000. The unexpected gain on plan assets in 2015 was a. $32,000. b. $55,000. c. $35,000. d. $34,000. 6.The corridor for 2015 was $300,000. The amount of AOCI-net loss amortized in 2015 was a. $33,333. b. $32,000. c. $14,000.…arrow_forwardSubject - account Please help me. Thankyou.arrow_forward
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