Bha Question 3SLS Company's defined benefit pension plan utilizes a funding formula that considers years of service andaverage compensation over employees' last five years of service to determine the pension benefit payable tothe plan participants. Daniela is a participant in SLS's defined benefit pension plan and has 30 years ofservice with the company. Her career average salary over the last 30 years is $82,000. However, hercompensation was $325,000 in the last six years with SLS. What is the maximum pension benefit that couldbe payable to Daniela at her retirement?$250,000$225,000$325,000$350,000

Retirement plans are defined as those schemes which help the investor in living a peaceful life…

Answered: SLS Company's defined benefit pension…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Buddha Baby ("BB") offers a defined pension plan for its employees and all their babies (and some employees have lots of babies). On January 1, 2025, the pension plan was underfunded by $2,000,000. BB has a December 31 year end. Pertinent details of the pension plan are as follows: pension plan assets market value, January 1 3,150,000 funding of pension plan 250,000 pension benefits earned by evenly through the year 185,000 payments to retirees (and their babies), end of year 95,000 actuarial gains 25,000 discount rate 8% What is ending balance of plan obligation at December 31, 2025? a. 5,634,400 b. 1,314,400 c. 1,360,600 d. 3,474,000 e. answer not provided
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ices A partially completed pension spreadsheet showing the relationships among the elements that comprise the defined benefit pension plan of Universal Products is given below. The actuary's discount rate is 5%. At the end of 2022, the pension formula was amended, creating a prior service cost of $280,000. The expected rate of return on assets was 8%, and the average remaining service life of the active employee group is 20 years in the current year, as well as, the previous two years. Required: Fill in the missing amounts. Note: Enter your answers in thousands (i.e., 5,500 should be entered as 5.5). Enter credit amounts with a minus sign. ($ in thousands) PBO Plan Assets Prior Service Net Loss Cost-AOCI AOCI Pension Expense Cash Net Pension (Liability)/ Asset Balance January 1, 2024 Service cost $ (840.0) $ 580.0 $ 266.0 $ 84.0 $ (260.0) 104.0 (42.0) Interest cost, 5% Expected return on assets Adjust for: Loss on assets Amortization Prior service cost Amortization Net loss Gain on PBO…
The projected unit credit method for funding a defined benefit pension plan will require payments when an employee is 35 year of age (when he started working for the company) that are: O Higher than the accumulated benefit method for the same period. O Higher than the level contribution method for the same period. O The same throughout the employee's service life. O Lower than the accumulated benefit method for the same period.
Current Attempt in Progress Oriole 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 Jim Paul Nancy Dave Kathy Year 2020 2021 2022 2023 On January 1, 2020, the company amended its pension plan, increasing its projected benefit obligation by $73,440. Compute the amount of prior service cost amortization for the years 2020 through 2025 using the years-of-service method, setting up appropriate schedules. 2024 2025 Future Years of Service $ 3 4 eTextbook and Media 5 6 6 Annual Amortization Assistance Used
Current Attempt in Progress Sheridan Corporation sponsors a defined benefit pension plan for its 100 employees. On January 1, 2023, the company's actuary provided the following information: Pension plan assets (fair value) Defined benefit obligation $1,020,000 1,410,000 The actuary calculated that the present value of future benefits earned for employee services rendered in 2023 amounted to $214,000, the December 31, 2023 defined benefit obligation was $1,831,200, and the appropriate interest or discount rate was 9%. The plan assets generated a return of $84,600 during 2023. The company funded the 2023 current service cost as well as $106,100 of the past service costs recognized in a previous year; however, no benefits were paid during the year. Sheridan is a private company and applies ASPE. (a) Prepare a schedule that indicates what the plan's surplus or deficit is at December 31, 2023. $
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3 continue b... The following information is available for the pension plan of Vaughn Company for the year 2020. Actual and expected return on plan assets $ 14,700 Benefits paid to retirees 40,800 Contributions (funding) 81,100 Interest/discount rate 10 % Prior service cost amortization 7,600 Projected benefit obligation, January 1, 2020 458,000 Service cost 63,900 Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount…
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.

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