Answered: paid were $45,000. The amount of…

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 6RE

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The following information relates to the defined benefit pension plan for the employees of a company: 1/1/20 12/31/20 12/31/21 Projected benefit obligation $207,000 $300,000 $414,000 Accumulated benefit obligation 187,000 298,000 387,000 Fair value of plan assets 153,000 260,000 448,000 Accumulated OCI--gains -0- 118,000 206,000 The company estimates that the average remaining service life is 8 years. The company’s contribution was $146,000 in 2021 and benefits paid were $46,000. The corridor (used in the corridor amortization) for 2021 is $ ________________. (Note: a…
The following information relates to the defined benefit pension plan for the employees of a company: 1/1/20 12/31/20 12/31/21 Projected benefit obligation $211,000 $318,000 $418,000 Accumulated benefit obligation 190,000 294,000 397,000 Fair value of plan assets 157,000 266,000 448,000 Accumulated OCI--gains -0- 135,000 145,000 The company estimates that the average remaining service life is 40 years. The company’s contribution was $64,000 in 2021 and benefits paid were $9,000. The actual return on plan assets in 2021 is $________________. (Use the formula: Ending Plan…
The following data are for the pension plan for the employees of R Company. 1/1/15 12/31/15 12/31/16 Defined benefit obligation P8,100,000 P8,400,000 P11,100,000 Plan assets (at fair value) 6,900,000 9,000,000 9,900,000 AOCI – net loss -0- 1,440,000 1,500,000 Discount rate (for year) 8% 7% R's contribution was P1,260,000 in 2016 and benefits paid were P1,125,000. R estimates that the average remaining service life is 15 years. Assume that the actual return on plan assets in 2016 was P800,000. The gain on plan assets in 2016 was
The following data are for the pension plan for the employees of Lockett Company 1/1/14 12/31/14 12/31/15 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. The actual return on plan assets in 2015 was $155,000 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 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 d. $12,000
Use 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.…
The following information relates to the defined-benefit pension plan for the employees of a company: 1/1/21 12/31/21 Fair value of plan assets $245,550 $371,000 Projected benefit obligation 220,000 417,000 Accumulated benefit obligation 187,000 397,000 Accumulated OCI – Gain/Loss 102,570Dr 148,230Dr The company estimates that the average remaining service life is 25 years. The company’s contribution was $79,000 in 2021 and benefits paid were $11,000. Settlement rate for 2021 is 6% and expected rate of return is 10%. The corridor for 2021 is $_________.
Question text The relationship between the amount funded and the amount reported for pension expense is as follows Select one: а. pension expense will be less than the amount funded. b. pension expense will be more than the amount funded. c. pension expense must equal the amount funded. d. pension expense may be greater than, equal to, or less than the amount funded.
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 for the employees of a company: 1/1/21 12/31/21 Fair value of plan assets $227,000 $364,000 Projected benefit obligation 211,000 408,000 Accumulated benefit obligation 195,000 377,000 Accumulated OCI – Gain/Loss 48,440Dr 163,790Dr The company estimates that the average remaining service life is 25 years. The company’s contribution was $128,000 in 2021 and benefits paid were $13,000. Settlement rate for 2021 is 7% and expected rate of return is 10%. The amount of accumulated OCI-Gain/Loss amortized in 2021 is $_________. (If there should be no corridor amortization, then enter 0. If your answer is a decimal, there is no need to round…
- 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.
The following information is related to the defined benefit pension plan of Dreamworld Company for the year ended 12/31/2020: Service cost $ 60,000 110,000 150,000 640,000 750,000 150,000 900,000 960,000 Contributions to pension plan Benefits paid to retirees Plan assets (fair value), January 11 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 Prior Service Cost 1/1 $ 700,000 Average remaining years of service Assuming no other relevant data exist. Required: 10 years 10% 9% A. Calculate the company's pension expense for 2020. B. Make journal entry (entries) related to the plan at 12/31/2020.

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paid were $45,000. The amount of accumulated OCI-gains amortized in 2021 is $_________. (If there should be no corridor amortization, then enter 0. If your answer is a decimal, there is no need to round your answer. Note: a year’s beginning is the previous year’s ending.)