The following defined benefit pension data of Carla Vista Corp. apply to the year 2020: Defined benefit obligation, funding basis, 1/1/20 (before amendment) $419,000 Plan assets, 1/1/20 408,600 Net defined benefit liability, 1/1/20 10,400 On January 1, 2020, Carla Vista Corp., through a plan amendment, granted prior service benefits having a present value of 53,300 Interest/discount rate 9% Annual pension service cost 43,500 Contributions (funding) 41,400 Actual return on plan assets 39,300 Benefits paid to retirees 30,100 The company applies ASPE and has made an accounting policy choice to base its actuarial valuation of the DBO on the funding basis.
The following defined benefit pension data of Carla Vista Corp. apply to the year 2020: Defined benefit obligation, funding basis, 1/1/20 (before amendment) $419,000 Plan assets, 1/1/20 408,600 Net defined benefit liability, 1/1/20 10,400 On January 1, 2020, Carla Vista Corp., through a plan amendment, granted prior service benefits having a present value of 53,300 Interest/discount rate 9% Annual pension service cost 43,500 Contributions (funding) 41,400 Actual return on plan assets 39,300 Benefits paid to retirees 30,100 The company applies ASPE and has made an accounting policy choice to base its actuarial valuation of the DBO on the funding basis.
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 10P
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Question
The following defined benefit pension data of Carla Vista Corp. apply to the year 2020:
The company applies ASPE and has made an accounting policy choice to base its actuarial valuation of the DBO on the funding basis.
Defined benefit obligation, funding basis, 1/1/20 (before amendment) | $419,000 | ||
Plan assets, 1/1/20 | 408,600 | ||
Net defined benefit liability, 1/1/20 | 10,400 | ||
On January 1, 2020, Carla Vista Corp., through a plan amendment, granted prior service benefits having a present value of |
53,300 | ||
Interest/discount rate | 9% | ||
Annual pension service cost | 43,500 | ||
Contributions (funding) | 41,400 | ||
Actual return on plan assets | 39,300 | ||
Benefits paid to retirees | 30,100 |
The company applies ASPE and has made an accounting policy choice to base its actuarial valuation of the DBO on the funding basis.
New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is partially correct.
Prepare a continuity schedule for the DBO for 2020. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Carla Vista Corp. Continuity Schedule choose the accounting period For the Year Ended December 31, 2020For the Month Ended December 31, 2020December 31, 2020 |
|||
---|---|---|---|
select an opening name Defined Benefit Obligation, 1/1/20Defined Benefit Obligation, 12/31/20Benefits Paid OutPast Service CostCurrent Service CostInterest Cost
|
$enter a dollar amount | ||
select an item Interest CostDefined Benefit Obligation, 1/1/20Past Service CostCurrent Service CostDefined Benefit Obligation, 12/31/20Benefits Paid Out
|
enter a dollar amount | ||
enter a subtotal of the two previous amounts | |||
select an item Interest CostPast Service CostDefined Benefit Obligation, 12/31/20Defined Benefit Obligation, 1/1/20Benefits Paid OutCurrent Service Cost
|
enter a dollar amount | ||
select an item Defined Benefit Obligation, 1/1/20Benefits Paid OutInterest CostDefined Benefit Obligation, 12/31/20Past Service CostCurrent Service Cost
|
enter a dollar amount | ||
select an item Interest CostDefined Benefit Obligation, 1/1/20Current Service CostDefined Benefit Obligation, 12/31/20Past Service CostBenefits Paid Out
|
enter a dollar amount | ||
select a closing name Defined Benefit Obligation, 1/1/20Defined Benefit Obligation, 12/31/20Current Service CostBenefits Paid OutPast Service CostInterest Cost
|
$enter a total amount |
Partially correct answer iconYour answer is partially correct.
Prepare a continuity schedule for the plan assets for 2020. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Carla Vista Corp. Continuity Schedule choose the accounting period For the Year Ended December 31, 2020For the Month Ended December 31, 2020December 31, 2020 |
|||
---|---|---|---|
select an opening name Plan Assets, 1/1/20Actual Return on Plan AssetsBenefits Paid OutContributionsPlan Assets, 12/31/20
|
$enter a dollar amount | ||
select an item Actual Return on Plan AssetsContributionsPlan Assets, 12/31/20Benefits Paid OutPlan Assets, 1/1/20
|
enter a dollar amount | ||
select an item ContributionsPlan Assets, 1/1/20Actual Return on Plan AssetsPlan Assets, 12/31/20Benefits Paid Out
|
enter a dollar amount | ||
select an item ContributionsBenefits Paid OutPlan Assets, 1/1/20Plan Assets, 12/31/20Actual Return on Plan Assets
|
enter a dollar amount | ||
select a closing name Plan Assets, 12/31/20Plan Assets, 1/1/20ContributionsBenefits Paid OutActual Return on Plan Assets
|
$enter a total amount |
Partially correct answer iconYour answer is partially correct.
Calculate pension expense for 2020
Pension expense | $enter Pension expense in dollars |
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