,calculate the amount of amortization of the net loss or gain that should be included
Q: Compare and contrast how GAAP depreciation expense vs. MACRS depreciation deductions are computed.
A: GAAP : Generally Accepted Accounting principles. MACRS: Modified Accelerated Cost Recovery System.
Q: The adjusted basis of an asset is the original cost (or basis) plus capital recoveries less capital…
A: Adjusted basis: The amount of original cost, plus additional investments (capital expenditure) and…
Q: re for impairment loss assets, what will happen/effect?
A: Impairment Recognition Business assets should be tested for impairment when a situation occurs that…
Q: The difference between book value of the asset with the proceeds received from its sale, will…
A: The book value of the asset is the cost of the asset less accumulated depreciation.
Q: Required Determine the capitalized cost of the asset.
A: Step 1 Hello. Since your question has multiple parts, we will solve first question for you. If you…
Q: Another name for a capital expenditure is: O Revenue expenditure O Asset expenditure O Long-term…
A: Capital Expenditure: A payment for goods or services that is reported on the balance sheet rather…
Q: Define amortization period.
A: Amortization: Amortization is a process in which the cost of intangible assets is spread equally…
Q: ing the investment is appropriately recognized as financial assets at amortized cost: Determine the…
A: Initial investment is the amount required to start a business or a project. It is also called…
Q: Which of the following is typically recorded at its present value? a. long-term investments b.…
A: Present value is the worth of any asset or liability that is more in the present as compared to the…
Q: Adjusted Net Asset Value method
A: Assets represent the future economic value of the company that is sacrificed in order to pay off the…
Q: EBITDA can be calculated using following formula depreciation = EBITDA + ЕBIT ammortisation EAT…
A: EBITDA means earning before interest , tax , depreciation and amortization.
Q: When disposing of an available-for-sale investment, where is the gain or loss on disposal reported…
A:
Q: Calculate Admissible depreciation, Including Additional Depreciation
A: Step 1 Depreciation is the Written down in the Value of the Assets.
Q: How is the regular payment in an amortization schedule determine?
A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…
Q: Explain the accounting for gain and loss contingencies.
A: Contingencies: Contingency is a situation where the outcome becomes uncertain and is resolved in…
Q: All of the following are components of the defined benefit cost except unvested past service…
A: Defined benefit cost includes: Service cost Expected return on plan assets Change in the effect of…
Q: e amortized cost for a financial asset
A: Amortized cost is the amount at which financial assets are reported on Balance Sheet.
Q: Computation and Calculation on how they get - Interest Received - Interest Income - Discount…
A: Bond Amortization - It is a principal paid regularly, along with its interest expenses over the life…
Q: Give five difference between straight line method and effective method in amortizing?
A: Solution Bond amortization At the time of issuing the bond , the market rate of interest and the…
Q: Define amortization schedule
A: Amortization: Amortization is an accounting method utilized to periodically lesser the book worth of…
Q: Is the nature of the gainor loss considered ordinary or long-term?
A: Ordinary gain or loss means any income which doesn't result as Capital gain or loss. Capital Gain or…
Q: What are the various types of long term assets? Name them.
A: Definition: Long-term assets are the assets which are intended to be held for a longer period of…
Q: goodwill amortization expensef
A: Goodwill amortization expense =Goodwill recorded/Useful life in years * Part of remaining months in…
Q: The expected amount that an entity would currently obtain from disposal of the asset after deducting…
A: An asset can be define as the resource which can be use by an individual, group, company and country…
Q: Describe the Amortization of Intangible Assets.
A:
Q: How do we decide whether to capitalize (record as an asset) or expense a particular cost?
A: Expensing a cost implies that it is included on the income statement and is subtracted from revenue…
Q: How to calculate the Amortization Expense?
A: Depreciation , amortization , depletion all means the fall in value of assets due to one reason or…
Q: how to calculate deprieation
A: When fixed asset is purchased, it is recorded in books of accounts at it original or acquisition /…
Q: Define Amortization.
A: Amortization: It is the process of allocating the value of an intangible asset over its definite…
Q: Illustrate the significance of depreciation and income taxes?
A: Depreciation is the charge against the usage, wear and tear or obsolescence of the asset in the…
Q: Explain the accounting and amortization for unexpected gains and losses.
A: Amortization expense: A charge created on intangible asset for its use over life of asset. It is…
Q: Define amortization expense
A: Amortization expenses is a tool or technique that helps to lower the book value of loans and…
Q: What is an impairment loss? A ) The amount by which the carrying amount of an asset exceeds the…
A: An impairment loss is a recognized decrease in the par value of an asset caused by a deterioration…
Q: The amortization process is like what other process?A. depreciationB. valuationC. recognizing…
A: Some assets loses out their value over the period of time. These can be fixed assets or natural…
Q: Present value of decommissioning and restoration costs are capitalized as PPE and with a…
A: Decommissioning cost is the cost which will be incurred when the asset useful life is over or when…
Q: What is an amortization schedule?
A: Long-Term Notes PayableLong-term notes payable refers to the obligation of the company in the form…
Q: What are the various types of short term assets? Name them.
A: Short-term assets: Short-term assets are current assets whose benefit can be benefited within a…
Q: Under IFRS, the recoverable amount of an asset is
A: Introduction:- Impairment loss arise when the amount by which the carrying amount of an asset…
Q: What do you mean when you say the depreciable life of an asset is defined?
A: The question explains about the depreciable life of an asset is defined
Q: What'sthe journal entry to accrue for amortization expenses?
A: Amortization is that process of expensing the utilization of intangible assets over time as against…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Given the following information for Tyler Companys pension plan at the beginning of the year, calculate the corridor, excess net loss (gain), and amortized net loss (gain). Assume an average remaining service life of 15 years.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 $1,930,000 a. $21,600 b. $1,800 c. $51,600 d. $4,300The following information relates to the pension plan for the employees of Cullumber Co.: Accum. benefit obligation Projected benefit obligation Fair value of plan assets AOCI - net (gain) or loss Settlement rate (for year) Expected rate of return (for year) O $665200 gain. O $282200 loss. 1/1/20 $110600 gain. $272400 gain. $8140000 8665000 7825000 -0- $ 12/31/20 8560000 9358000 9820000 (1402000 ) 11% 8% 12/31/21 $ 11500000 12907000 10954000 (1570000 ) 11% Cullumber estimates that the average remaining service life is 16 years. Cullumber's contribution was $1213000 in 2021 and benefits paid were $877000. The unexpected gain or loss on plan assets in 2021 is 7%
- Analyzing Pension Gain/Loss Spears Company presents the following information related to its pension plan for the year, before recording pension expense. Projected Benefit Obligation, Jan. 1: $300,000 Cr Projected Benefit Obligation, Dec. 31: 325,000 Cr Accumulated OCI-Pension Gain/Loss, Jan. 1: 12,000 Cr Plan Assets, Jan. 1: 280,000 Dr Plan Assets, Dec.31: 295,000 Dr Actuarial loss on PBO, determined at Dec. 31: $4,200 Contributions to pension fund: 10,000 Benefits paid: 15,000 Average remaining service period of employees, current and next year: 20 years Expected rate of return: 10% Required: a, Determine the amortization of Accumulated OCI-Pension Gain/Loss for the current year, usign (1) corridor (minimum amortization) and (2) straight-line amortization based on average remaining service period. Note: Do not use negative signs with your answers. 1. Amortization under the corridor approach. 2. Amortization under the straight-line method. b. Determine the Accumulated OCI-Pension…The following information relates to Schmidt Sausage Company's defined benefit pension plan during the current reporting year: Plan assets beginning of the year Expected return on plan assets Actual return on plan assets Cash contributions Amortization of net loss Retiree benefits ($ in millions) Pension plan assets of the year $ 580 58 49 78 9 10 Required: Determine the amount of pension plan assets at fair value on December 31. Note: Enter your answers in millions.Pension data for Millington Enterprises include the following: (S in millions) Discount rate, 10% Projected benefit obligation, January 1 Projected benefit obligation, December 31 Accumulated benefit obligation, January 1 Accumulated benefit obligation, December 31 Cash contributions to pension fund, December 31 Benefit payments to retirees, December 31 $360 465 300 415 150 54 Required: Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the year ended December 31.
- The following data relate to Voltaire Company's defined benefit pension plan: ($ in millions) Plan assets at fair value, January 1 Expected return on plan assets Actual return on plan assets Contributions to the pension fund (end of year) Amortization of net loss Pension benefits paid (end of year) Pension expense $600 60 48 100 10 11 72 Required: Determine the amount of pension plan assets at fair value on December 31.The following refers to the pension spreadsheet (columns have missing amounts) for the current year for Ng Enterprises. ($ in millions) Debit(Credit) PBO Plan Assets Prior Service Cost Net (Gain)/Loss Pension Expense Cash Net Pension (Liability)/Asset Beginning balance 450 60 55 50 Service cost (85) Interest cost (25) Expected return on assets 55 Gain/loss on assets 3 Amortization of: Prior service cost Net gain/loss (1) Loss on PBO (65) Contributions to fund 40 Retiree benefits paid Ending balance (530) 54 122 What were the retiree benefits paid?Pension data for David Emerson Enterprises Include the following: Discount rate, 12% Projected benefit obligation, January 1 Projected benefit obligation, December 31 Accumulated benefit obligation, January 1 Accumulated benefit obligation, December 31 Cash contributions to pension fund, December 31 Benefit payments to retirees, December 31 Service cost ($ in millions) million $300 470 Required: Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the year ended December 31. 305 420 155 55
- The actuary for the pension plan of Sheridan Inc, calculated the following net gains and losses. Incurred during the Year 2020 2021 2022 2023 As of January 1, 2020 2021 Other information about the company's pension obligation and plan assets is as follows. 2022 2023 2020 2021 2022 2023 (Gain) or Loss $301,200 $ 477,600 Projected Benefit Obligation $ (211,500) (290,200) $ $ Year Minimum Amortization of (Gain) Loss Sheridan Inc. has a stable labor force of 400 employees who are expected to receive benefits under the plan. The total service-years for all participating employees is 4,800. The beginning balance of accumulated OCI (G/L) is zero on January 1, 2020. The market- related value and the fair value of plan assets are the same for the 4-year period. Use the average remaining service life per employee as the basis for amortization. $3,996,200 Compute the minimum amount of accumulated OCI (G/L) amortized as a component of net periodic pension expense for each of the years 2020, 2021,…Pension data for Carolina Consulting Company included the following for the current calendar year: Service cost PBO, January 1 Plan assets, January 1 Amortization of prior service cost Amortization of net loss Discount rate, 6% Expected return on plan assets, Actual return on plan assets, 10% $116,000 830,000 880,000 6,800 2,800 8% Required: Determine pension expense for the year. (Amounts to be deducted should be indicated with a minus sign.) Pension Expense Pension expenseThe following data relate to Ramesh Company's defined benefit pension plan: ($ in millions) $690 69 55 118 13 20 90 Plan assets at fair value, January 1 Expected return on plan assets Actual return on plan assets Contributions to the pension fund (end of year) Amortization of net loss Pension benefits paid (end of year) Pension expense Required: Determine the amount of pension plan assets at fair value on December 31. (Enter your answers in millions. Amounts to be deducted should be indicated with a minus sign.) Pension Plan Assets Beginning of the year End of the year