Lorin Management Services has an unfunded postretirement benefit plan. On December 31, 2024, the following data were a concerning changes in the plan's accumulated postretirement benefit obligation with respect to one of Lorin's employees: APBO at the beginning of 2024 Interest cost: ($29,167 x 8%) Service cost: ($72,000 × 1 ÷ 16) Portion of EPBO attributed to 2024 APBO at the end of 2024 Required: $ 29,167 2,333 4,500 $ 36,000 1. Over how many years is the expected postretirement benefit obligation being expensed (attribution period)? 2. What is the expected postretirement benefit obligation at the end of 2024? 3. When was the employee hired by Lorin? 4. What is the expected postretirement benefit obligation at the beginning of 2024?
Q: Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The…
A: Return on investment helps in measuring the performance by evaluating the profit and efficiency of…
Q: 10. Gibson, Inc. had beginning retained earnings of $260,000 on January 1, 2024. During the year,…
A: Retained earnings means the money accumulated by the entity over different periods. It is the income…
Q: - It is Proposed to supply cloud with a maximum demand of 400 mW and loud fuctor of 75% choice is to…
A: To calculate the overall cost per kWh for each scheme (thermal, hydraulic, and nuclear), we need to…
Q: MarchMarch 4: Sold $ 1 comma 500$1,500 of merchandise to Yancy Yancy Corp., who paid by credit card.…
A: Journal entries are recorded in the books of account in a systematic order. This requires a company…
Q: Joe and Jessie are married and have one dependent child, Lizzie. Lizzie is currently in college at…
A: Adjusted gross income is the difference between the gross income and specific deductions allowed by…
Q: You work as the financial controller for Dexter, a publicly listed company that prepares…
A: IFRS -IFRS stands as an international financial reporting standard that guidelines how to report any…
Q: What is the primary purpose of the accounting model a) to prepare financial statements b) to record…
A: The primary purpose of the accounting model is:c) to provide information for decision…
Q: Cheesesteak's Sandwich Shop had the following long-term asset balances as of January 1, 2024: Cost…
A: The assets are depreciated because the value of the fixed assets of the company reduce over time.…
Q: The following cases are Independent. Case A Jethrow Ltd. had 1,700,000 common shares outstanding on…
A: Ordinary Shares -Common Stocks is the sum of money raised by a firm through the issuance of common…
Q: Sales revenue Income Division A ? Division B Division C $ 11,000,000 ? $570,000 $ 2,150,000 ?…
A: Residual income:The income left in the hand of an individual after paying all expenses and debts is…
Q: On December 31, 2020, Extreme Fitness has adjusted balances of $960,000 in Accounts Receivable and…
A: Account Receivables are the debtors to whom sales were made on account and the amount is yet to be…
Q: 1st Q 2nd Q 3rd Q 4 Q Gross Income 600,000 per Quarter Deductions per 280,000 Quarter 740,000…
A: Income Tax Liability:Any liability to an individual/ corporate or a company to pay taxes to the…
Q: multiple allocation bases should be selected. The data it collected appear in the table below.…
A: Overhead cost:The costs or expenses that are related to the day-to-day operations of a business but…
Q: Happy Valley Pet Products uses a standard costing system that applies overhead to products based on…
A: Variance Analysis :Variance analysis is a type of method used to determine and examine the…
Q: Lucia Company reported cos Beginning inventory Cost of goods purchas Cost of goods availab Ending…
A: Cost of goods sold is the total of all costs used to create a product or service, which has been…
Q: Raw materials inventory Work in process inventory-Cutting Work in process inventory-Stitching…
A: Raw material:The input material or inventory that is used for the manufacturing of final good is…
Q: The following data relate to the Machinery account of Metlock, Inc. at December 31, 2025. Machinery…
A: JOURNAL ENTRIES DateAccounts Title and explanations Debit Credit ( a )Depreciation expense…
Q: Products manufactures 40,000 units of part S-6 each year for use on its production line. At this…
A: The differential analysis is performed to compare the different alternatives available with the…
Q: Balance Sheet You are evaluating the balance sheet for Cypress Corporation. From the balance sheet…
A: Note: "Since you have posted multiple questions we will provide solution only to the first as per…
Q: Sales-Value-at-Split-off Method Alomar Company manufactures four products from a joint production…
A: COST ALLOCATIONWhen item of cost are Identifiable directly with some products or departments such…
Q: Item 1 Which of the following is a budget used to project cash flow and likely cash shortfalls…
A: A cash budget is a financial tool that helps businesses and individuals manage their cash flow…
Q: What are Lily's taxable income and tax liability for the year?!
A: Capital gain refers to the profit earned from the sale or exchange of a capital asset, such as…
Q: Alomar Company manufactures four products from a joint production process: barlon, selene, plicene,…
A: Joint cost is the total cost incurred in the manufacturing of two or more joint products during the…
Q: Abercrombie & Fitch Co. (ANF) and The Gap, Inc. (GPS) are two U.S. apparel retailers. The current…
A: Current ratio is the measure that helps the entity in determining its liquidity position. It is…
Q: The following are the transactions for the month of July. July 1 July 13 Beginning Inventory…
A: Ending inventory is the amount of inventory that an entity has on hand, at the end of the period. It…
Q: On January 1, 2024, Ravetch Corporation's projected benefit obligation was $40 million. During 2024,…
A: The amount that the business needs to pay for its future pension commitments as of right now is…
Q: Mansi, a self-employed influencer, left her home in Georgia on Monday to fly to New York to meet…
A: Deductions:Deduction refers to the tax benefit amount that is given to the taxpayer by the tax…
Q: Beckley Corporation has provided the following data from its activity-based costing accounting…
A: First stage allocation is the allocation of overhead costs to different activity cost pools. It is…
Q: Analyze Valley Hospital's admissions time variance Valley Hospital began using standards to evaluate…
A: Variance analysis is a technique used in managerial accounting to compare actual financial or…
Q: Perpetual inventory using LIFO Beginning inventory, purchases, and sales for Item 88-HX are as…
A: Last in first out is an inventory valuation technique under this method the first purchases are sold…
Q: Comparative financial statements for Weller Corporation, a merchandising company, for the year…
A: Working capital: Funds available for a company's day-to-day operations. Current ratio: The ratio of…
Q: A $525,000 bond issue on which there is an unamortized discount of $43,000 is redeemed for $470,000.…
A: Bond:A bond is simply referred as a debt security that represents a loan made by an investor to a…
Q: 1) Compute the unit sales to earn the target income. Numerator: Denominator: 2) Compute the dollar…
A: Sales required to earn target profit = (Fixed cost + Target profit)/ Contribution per…
Q: Solve for the missing numbers on the cash budget, assuming that the accountant has requested a…
A: A cash budget is a company's estimation of cash inflows and outflows over a specific period of time,…
Q: Clonex Labs, Incorporated, uses the weighted-average method of process costing. The following data…
A: Conversion costs are the cost incurred on the making of the goods. It includes the cost of direct…
Q: The December 31, 2024, inventory of Tog Company, based on a physical count, was determined to be…
A: When using a periodic inventory system, the accurate inventory balance is usually ascertained by…
Q: LO.3 Rod Clooney purchases Agnes Mitchell's sole proprietorship for $990,000 on August 15, 2019. The…
A: Amount realized is the amount received from the sale of an asset or financial instrument It…
Q: Alleyway Corporation manufactures two styles of leather bowling bag, the Strike and Turkey. Budgeted…
A: Direct Labour Cost Budget is the Estimation of Total Cost Incurred in Direct Labour During the Year…
Q: Operating results for Division A of Alpha Company during 2019 are as follows: Sales $480,000 Cost…
A: Income statement is a financial statement that shows profitability, total revenue and total…
Q: Cash Accounts receivable Raw materiala inventory Work in process inventory Finished goods inventory…
A: Income statement:An income statement is a statement showing a organization's incomes, expenses,…
Q: Culver Corporation has elected to use the fair value option for one of its notes payable. The note…
A: An unrealized holding gain or loss on notes payable is recorded for the change in the fair value of…
Q: Hannibal Steel Company's Transport Services Department provides trucks to haul ore from the…
A: Variable cost and fixed cost:The cost or expense that changes with the change in the number of units…
Q: Thraya Industries had the following transactions in the month of March. Thraya uses a perpetual…
A: The objective of the question is to calculate the cost of goods sold, ending inventory, and gross…
Q: 5. (a) Illustrate on the same graph two FAB curves, one relatively elastic (FAB₁) and the other…
A: The objective of the question is to understand the concept of elasticity in the context of capital…
Q: Ratio of liabilities to stockholders' equity and times interest earned The following data were taken…
A: Times interest earned ratio is calculated by dividing earnings before interest & tax by interest…
Q: On January 1, Year 1, Mankin Company purchased a new truck for $88,200. Its estimated useful life is…
A: The Units Of Production Depreciation Method Is a Way To Calculate Depreciation Of An Asset In Cases…
Q: Problem 8-37 (LO. 6, 7) Amber Industries (a sole proprietorship) sold three 5 1231 assets during…
A: When certain types of property are sold or otherwise disposed of at a gain, Section 1245 recapture…
Q: Compute the amount of each of the following items. (Round present value factor calculations to 5…
A: Manufacturer Lessor:Manufacturers or dealers frequently provide customers with the option of either…
Q: Thraya Industries had the following transactions in the month of March. Thraya uses a perpetual…
A: The objective of the question is to calculate the cost of goods sold, ending inventory, and gross…
Q: Compute the cost of goods transferred out and the ending inventory f
A: The equivalent units are calculated on the basis of the percentage of the work completed during the…
Vishunu
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- In 2019, Magenta Corporation paid compensation of 45,300 to the participants in a profit sharing plan. During 2019, Magenta Corporation contributed 13,200 to the plan. a. Calculate Magentas deductible amount for 2019. b. Calculate the amount of any contribution carryover from 2019.Lorin Management Services has an unfunded postretirement benefit plan. On December 31, 2024, the following data were available concerning changes in the plan's accumulated postretirement benefit obligation with respect to one of Lorin's employees: APBO at the beginning of 2024 $ 16,364 Interest cost: ($16,364 × 10%) 1,636 Service cost: ($44,000 × 1 ÷ 22) 2,000 Portion of EPBO attributed to 2024 APBO at the end of 2024 $ 20,000 Required: Over how many years is the expected postretirement benefit obligation being expensed (attribution period)? What is the expected postretirement benefit obligation at the end of 2024? When was the employee hired by Lorin? What is the expected postretirement benefit obligation at the beginning of 2024?Sandhill Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2025, the following balances relate to this plan. Plan assets Projected benefit obligation Pension asset/lability Accumulated OCI (PSC) (a) As a result of the operation of the plan during 2025, the following additional data are provided by the actuary. Service cost Settlement rate, 9% Actual return on plan assets Amortization of prior service cost Expected returson plan assets Unexpected loss from change in projected benefit obligation due to change in actuarial predictions Contributions Benentspaid retirees items Balance, Jan 1, 2025 Service cost $496,400 610,800 interest cost 114400 Actual return 98,000 Dr. Unexpected gain Using the data above, compute pension expense for Sandhill. for the year 2025 by preparing a pension worksheet. (Enter all amounts as positive.) $90.900 54,700 18.300 51.600 76.600 103.700 85,200 Annual Pension Expense C Cath SUPPORT
- Hollenbeck Foods Inc. sponsors a postretirement medical and dental benefit plan for its employees. The following balances relate to this plan on January 1, 2020. Plan assets $200,000 Expected postretirement benefit obligation 820,000 Accumulated postretirement benefit obligation 200,000 No prior service costs or OCI balances exist As a result of the plan's operation during 2020, the following additional data are provided by the actuary. Service cost is $70,000 Discount rate is 10% Contributions to plan are $65,000 Expected return on plan assets is $10,000 Actual return on plan assets is $15,000 Benefits paid to employees are $44,000 Average remaining service to full eligibility: 20 years Instructions: a. Using the preceding data, compute the net periodic postretirement benefit cost for 2020 by preparing a worksheet that shows the journal entry for postretirement expense and the year-end balances in the related postretirement benefit memo accounts.…On January 1, 2019, Fun Company adopted a healthcare plan for its retired employees. To determine eligibility for benefits, the company retroactively gives credit to the date of hire for each employee. The following information is available about the plan: Service cost $31,550 Accumulated postretirement benefit obligation (1/1/19) 114,000 Expected return on plan assets 0 Amortization of Prior service cost 11,400 Payments to retired employees during 2019 5,530 Interest rate 10% Average remaining service period of active plan participants (1/1/19) 10 years Required: 1. Compute the OPRB expense for 2019 if the company uses the average remaining service life to amortize the prior service cost. 2. Prepare all the required journal entries for 2019 if the plan is not funded.Sandhill Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets $458,800 Projected benefit obligation 574,100 Pension asset/liability 115,300 Accumulated OCI (PSC) 103,900 Dr. As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost $94,400 Settlement rate, 8% Actual return on plan assets 54,600 Amortization of prior service cost 19,100 Expected return on plan assets 51,500 Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions 75,700 Contributions 101,100 Benefits paid retirees 86,700 (a) Using the data above, compute pension expense for Sandhill Corp. for the year 2020 by preparing a pension worksheet. (Enter all amounts as positive.) SANDHILL CORP.Pension Worksheet General Journal…
- Pronghorn Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets $497,900 Projected benefit obligation 571,700 Pension asset/liability 73,800 Accumulated OCI (PSC) 101,400 Dr. As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost $87,700 Settlement rate, 9% Actual return on plan assets 53,100 Amortization of prior service cost 18,300 Expected return on plan assets 50,200 Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions 74,400 Contributions 97,200 Benefits paid retirees 84,500 Prepare the journal entry for pension expense for 2020Hollenbeck Foods Inc. sponsors a postretirement medical and dental benefit plan for its employees. The following balances relate to this plan on January 1, 2020. Plan assets $200,000 Expected postretirement benefit obligation 820,000 Accumulated postretirement benefit obligation 200,000 No prior service costs or OCI balances exist. As a result of the plan's operation during 2020, the following additional data are provided by the actuary. Service cost is $70,000 Discount rate is 10% Contributions to plan are $65,000 Expected return on plan assets is $10,000 Actual return on plan assets is $15,000 Benefits paid to employees are $44,000 Average remaining service to full eligibility: 20 years Instructions Using the preceding data, compute the net periodic postretirement benefit cost for 2020 by preparing a worksheet that shows the journal entry for postretirement expense and the year-end balances in the related postretirement benefit memo accounts.…16. Southeast Technology provides postretirement health care benefits to employees. On January 1, 2021, the following plan-related data were available: ($ in thousands) Prior service cost—originated in 2016 $ 50 Accumulated postretirement benefit obligation 530 Fair value of plan assets none Average remaining service period to retirement 20 years (same in previous 10 years) Average remaining service period to full eligibility 15 years (same in previous 10 years) On January 1, 2021, Southeast amends the plan in response to spiraling health care costs. The amendment establishes an annual maximum of $3,000 for medical benefits that the plan will provide. The actuary determines that the effect of this amendment is to decrease the APBO by $80,000. Management amortizes prior service cost on a straight-line basis. The interest rate is 8%. The service cost for 2021 is $114,000. Required:1. Complete the below table to calculate the prior service cost…
- Southeast Technology provides postretirement health care benefits to employees. On January 1, 2016, the following plan-related data were available: ($ in 000s) Prior service cost—originated in 2011 $ 50 Accumulated postretirement benefit obligation 530 Fair value of plan assets none Average remaining service period to retirement 20 years (same in previous 10 yrs.) Average remaining service period to full eligibility 15 years (same in previous 10 yrs.) On January 1, 2016, Southeast amends the plan in response to spiraling health care costs. The amendment establishes an annual maximum of $3,000 for medical benefits that the plan will provide. The actuary determines that the effect of this amendment is to decrease the APBO by $80,000. Management amortizes prior service cost on a straight-line basis. The interest rate is 8%. The service cost for 2016 is $114,000. Required: 1. Calculate the prior service cost amortization for 2016. 2. Calculate the postretirement benefit expense for 2016.Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2024 (the end of Beale's fiscal year), the following pension-related data were available: Projected Benefit Obligation Balance, January 1, 2024. Service cost Interest cost, discount rate, 5 Gain due to changes in actuarial assumptions in 2024 Pension benefits paid Balance, December 31, 2024 Plan Assets Balance, January 1, 2024 Actual return on plan assets (Expected return on plan assets, $45) Cash contributions Pension benefits paid Balance, December 31, 2024 January 1, 2024, balances: Pension asset Prior service cost-AOCI (amortization $8 per year) Net gain-AOCI (any amortization over 15 years) ($ in millions) Balance, January 1, 2024 Service cost Interest cost, 5% Expected return on assets Adjust for: Loss on assets Amortization of: Prior service cost Net gain Gain on PBO Cash funding Retiree benefits Balance, December 31, 2024 $ ($ in millions) $ 500 40 PBO Required: Prepare a pension spreadsheet…Bonita Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets $469,800 Projected benefit obligation 607,000 Pension asset/liability 137,200 Accumulated OCI (PSC) 97,100 Dr. As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost $91,100 Settlement rate, 8% Actual return on plan assets 54,400 Amortization of prior service cost 19,100 Expected return on plan assets 51,600 Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions 79,700 Contributions 99,500 Benefits paid retirees 85,800 Using the data above, compute pension expense for Bonita Corp. for the year 2020 by preparing a pension worksheet. (Enter all amounts as positive.) BONITA CORP.Pension Worksheet General Journal Entries Memo…