90. Azalea Inc. has a defined-benefit pension plan covering its 200 employees. Azalea agrees to amend its pension benefits. The prior service cost associated with the amendment is $120,000. The employees are grouped according to expected years of retirement, as follows: Group Number of Employees Expected Retirement on December 31 A 20 2025 В BCD 50 2026 с 90 2027 40 2028 What is the service years total for the year ending December 31, 2026 and what is the overall total number of service years?

90. Azalea Inc. has a defined-benefit pension plan covering its 200 employees. Azalea agrees to amend its pension benefits. The prior service cost associated with the amendment is $120,000. The employees are grouped according to expected years of retirement, as follows: Group Number of Employees Expected Retirement on December 31 A 20 2025 В BCD 50 2026 с 90 2027 40 2028 What is the service years total for the year ending December 31, 2026 and what is the overall total number of service years?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

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

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

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 13E

See similar textbooks

Similar questions

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.
he following information relates to the pension plan for the employees of Cullumber Co.: (See Image) Cullumber estimates that the average remaining service life is 16 years. Cullumber's contribution was $ 1213000 in 2021 and benefits paid were $ 877000.The actual return on plan assets in 2021 is a. $ 2011000. b. $ 1134000. c. $ 798000. d. $ 336000.
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. $4,300
ABC Inc. follows IFRS for financial reporting purposes and has established a defined benefit pension plan for its employees. Pertinent details of the plan for the year ended December 31, 2025 are as follows: current service costs, accrued end of year $52,000 past service costs, accrued beginning of year $20,000 benefit payents to retirees, paid evenly throughout the year $85,000 discount rate used by actuary 5% actuarial losses in the year $10,000 pension obligation as at January 1, 2025 $750,000 pension assets as at January 1, 2025 $725,000 What is the balance of the pension obligation at December 31, 2025? Detail explanation, please
Blossom Company has five employees participating in its defined benefit pension plan. Expected years of future service for these employees at the beginning of 2025 are as follows. Employee Future Years of Service Daniel 3 Mark 4 Nancy 5 Kenneth Betty 6 6 On January 1, 2025, the company amended its pension plan, increasing its projected benefit obligation by $80,640. Compute the amount of prior service cost amortization for the years 2025 through 2030 using the years-of-service method, setting up appropriate schedules. Year Annual Amortization 2025 $ 2026 2027 2028 2029 2025
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.
Pharoah Inc. has a defined-benefit pension plan covering its 248 employees. Pharoah agrees to amend its pension benefits. The prior service cost associated with the amendment is $180230. The employees are grouped according to expected years of retirement, as follows: Group A B C D Number of Employees 32 62 $66712 O $41426 O $45058 O $5632 102 52 Expected Retirement on December 31 2025 2026 2027 2028 Using the straight-line amortization over average remaining service life approach, what is the annual amount of Prior Service Cost amortization recognized in 2027?
Fernando's Furniture Inc. sponsors a defined benefit pension plan for its employees. The plan's trustee reports the following information for calendar 2023: Defined benefit obligation, January 1 Fair value of plan assets, January 1..... Current service cost......... $240,000 180,000 80,000 Actual and expected return on plan assets ....21,000 Contributions .70,000 Benefits paid to retirees. 120,000 Interest (discount) rate..... 10% Past service costs (as of January 1). 10,000 ……………. The corporation uses ASPE. Instructions a) Calculate the amount of the defined benefit expense for 2023, and prepare the required adjusting entries. b) Calculate the surplus or deficit of the plan on December 31, 2023.
Cullumber Corporation has a defined-benefit pension plan covering its 1500 employees. Cullumber agrees to amend its pension benefits. The prior service cost associated with the amendment is $750000, The employees are grouped according to expected years of retirement, as follows: Group A B с 0 D Number of Employees 300 O 3730 O 1500 O 810 0 6000 415 540 245 Expected Retirement on December 31 2025 2026 2027 2028 What is the overall total number of service years to use for amortization calculations using the years of service approach?
On January 1, 2026, Crane Company amended its pension plan which caused an increase of $846,680 in its projected beneht obligation. The company has 630 employees who are expected to receive benefits under the company's defined-benefit pension plan. The personnel department provided the following information regarding expected employee retirements: Number of Employees Expected Retirements On December 31 65 2026 135 2027 320 2028 110 2029 630
On January 1, 2020, Carla Vista Incorporated amended its pension plan which caused an increase of $5,460,150 in its projected benefit obligation. The company has 445 employees who are expected to receive benefits under the company's defined-benefit pension plan. The personnel department provided the following information regarding expected employee retirements: Number ofEmployees Expected RetirementsOn December 31 49 2020 129 2021 69 2022 169 2023 29 2024 445 The company plans to use the years-of-service method in calculating the amortization of prior service cost as a component of pension expense.Prepare a schedule which shows the amount of annual prior service cost amortization that the company will recognize as a component of pension expense from 2020 through 2024.
Metlock Company has five employees participating in its defined benefit pension plan. Expected years of future service for these employees at the beginning of 2020 are as follows. Employee Future Years of Service Jim 3 Paul 4 Nancy 5 Dave 6 Kathy 6 On January 1, 2020, the company amended its pension plan, increasing its projected benefit obligation by $ 84,960.Compute the amount of prior service cost amortization for the years 2020 through 2025 using the years-of-service method, setting up appropriate schedules.