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, $49) Cash contributions Pension benefits paid Balance, December 31, 2024 January 1, 2024, balances: Pension asset Prior service cost-AOCI (amortization $6 per year) Wet gain-AOCI (any amortization over 10 years) ($ in millions) $ 740 44 85 (34) $ 835 ($ in millions) $ 680 70 34 (18) (34) $ 732 ($ in millions) $ 60 30 124

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, $49) Cash contributions Pension benefits paid Balance, December 31, 2024 January 1, 2024, balances: Pension asset Prior service cost-AOCI (amortization $6 per year) Wet gain-AOCI (any amortization over 10 years) ($ in millions) $ 740 44 85 (34) $ 835 ($ in millions) $ 680 70 34 (18) (34) $ 732 ($ in millions) $ 60 30 124

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Analyzing Changes in Plan Assets and PBO The following information pertains to a company’s defined benefit plan. Balance Fair value of plan assets, Jan. 1, 2020 $2,000 Dr. Fair value of plan assets, Dec. 31, 2020 2,250 Dr. Projected benefit obligation, Jan. 1, 2020 2,000 Cr. Net pension asset (liability), Dec. 31, 2020 80 Cr. Activity 2020 Actual return on plan assets $120 Contributions to plan assets 180 Service cost 200 Other Discount rate 8% Expected rate of return on plan assets 7% Required a. Calculate benefits paid to retirees in 2020. Note: Do not use a negative sign with your answer.$Answer b. Calculate any actuarial gain or loss on the PBO in 2020.Note: Use a negative sign to indicate a loss. $Answer
Problem 26-3 (IAA) Rachel Company revealed the following information for the current year: Fair value of plan assets-January 1 Projected benefit obligation-January 1 Current service cost Past service cost Actual return on plan assets Contribution to the plan Benefits paid to retirees Discount rate 1. What amount should be reported as employee benefit expense? a. 2,000,000 2,200,000 c. 2,500,000 d. 1,750,000 2. What amount should be reported as fair value of plan assets on December 31? a. 7,000,000 b. 6,500,000 c. 6,200,000 d. 5,500,000 5,000,000 7,500,000 1,450,000 300,000 500,000 1,500,000 800,000 10% 3. What amount should be reported as projected benefit obligation on December 31? a. 9,250,000 b. 9,700,000 c. 8,950,000 d. 9,200,000 4. What amount should be reported as accrued benefit cost on December 31? a. 3,000,000 b. 2,500,000 c. 2,000,000 d. 1,500,000
Analyzing Changes in Plan Assets and PBO The following information pertains to a company's defined benefit plan for the year. Balance Fair value of plan assets, Jan. 1 Fair value of plan assets, Dec. 31 Projected benefit obligation, Jan. 1 Net pension asset (liability), Dec. 31 Activity for the Year Actual return on plan assets $300 Contributions to plan assets 450 Service cost 500 $ 400 Discount rate 8% Expected rate of return on plan assets 7% Required a. Calculate benefits paid to retirees during the year. Note: Do not use a negative sign with your answer. Other $ Check X b. Calculate any actuarial gain or loss on the PBO for the year. Note: Use a negative sign to indicate a loss. $5,000 Dr. 5,625 Dr. 5,000 Cr. 200 Cr. x
NOTE 17: EMPLOYEE BENEFIT PLANS (in part) ($ in millions) Changes in projected benefit obligation: Obligation at beginning of period Service cost Interest cost Actuarial (gain) loss Benefits paid Obligation at end of period Change in plan assets: Fair value of plan assets at beginning of period Actual return (loss) on plan assets* Employer contribution Benefits paid Fair value of plan assets at end of period Net liability recognized at end of period *Expected return $20 and $19 in 2020 and 2019, respectively Req 1 to 3 Pension Benefits 2020 Req 4 $ 608 1 21 44 (40) $634 Complete this question by entering your answers in the tabs below. $ 486 50 14 (40) 510 $ (124) View transaction list 2019 $ 597 1 24 Required: 1. What amount did Maur report in its balance sheet related to the pension plan at June 30, 2020? 2. When calculating pension expense at June 30, Maur included $10 million in its income statement as the amortization of unrecognized net actuarial loss (net loss-AOCI). This AOCI…
Benefit obligation, 1/1/2022, P9MFVPA, 1/1/2022, P10MCurrent service cost, P1.7MPast service cost, P500KBenefits paid to retirees, P2.2MContribution to the plan, P2MActual return on plan assets, P1.5MActuarial loss due to remeasurement of benefit obligation, P400KDiscount rate, 12%There are no asset ceilings at the beginning and end of the year.What is the benefit obligation of DEF Co. on Dec. 31, 2022?
II IIUTIOLIUITFIUVIUEU Dy reision FIGII ACLUGI y. a. Projected benefit obligation as of December 31, 2020 = $3,200. b. Prior service cost from plan amendment on January 2, 2021 = $600 (straight-line amortization for 10-year average remaining service period). c. Service cost for 2021 = $640. d. Service cost for 2022 = $690. e. Discount rate used by actuary on projected benefit obligation for 2021 and 2022 = 10%. Payments g. Payments to retirees in 2022 = $570. h. No changes in actuarial assumptions or estimates. i. Net gain-AOCI on January 1, 2021 = $370. j. Net gains and losses are amortized for 10 years in 2021 and 2022. to retirees in 2021 = $500. Information Provided by Pension Fund Trustee: a. Plan asset balance at fair value on January 1, 2021 = $2,300. b. 2021 contributions = $660. c. 2022 contributions = $710. d. Expected long-term rate of return on plan assets = 12%. e. 2021 actual return on plan assets = $210. f. 2022 actual return on plan assets = $260. Required: 1. Calculate…
PROBLEM 6: MULTIPLE CHOICE – COMPUTATIONAL 1. The actuarial valuation report of an entity shows the following information: Present value of defined benefit obligation, Jan. 1 340,000 Current service cost 30,000 Discount rate 10% Benefits paid to retirees Actuarial gain 100,000 60,000 How much is the year-end balance of the present value of defined benefit obligation? a. 210,000 b. 244,000 c. 304,000 d. 364,000
Fair value of plan assets 4. What is the net remeasurement loss for the current year? relation to a defined benefit plan for the current year: Projected benefit obligation Ultimate Company provided the following information in Problem 18-22 (IFRS) Prepaid/accrued benefit cost - surplus 3. What amount should be reported as employee benefit January 1 December 31 2,600,000 2,000,000 3,000,000 2,100,000 Asset ceiling Effect of asset ceiling 600,000 200,000 900,000 300,000 400,000 600,000. Current service cost Contribution to the plan Benefits paid Discount rate 100,000 350,000 150,000 10% 1. What is the actual return on plan assets for the current year: a. 200,000 b. 350,000 c. 150,000 d. 260,000 2. What is the actuarial gain due to decrease in PBO? a. 50,000 b. 40,000 c. 30,000 d. С. * What amount should be reported as employee benefit expense? а. 200,000 b. 100,000 с. 80,000 d. 40,000 a. 110,000 b. 220,000 c. 270,000 d. 170,000
Crane Company provides the following information about its defined benefit pen plan for the year 2025. (a) Prepare a pension worksheet inserting January 1, 2025, balances, showing December 31. 2025. (Enter all amounts as positive.)
What is the amount of prepaid/accrued benefit cost that should be shown on the December 31, 2019 statement of financial position? 560,000 700,000 840,000 2,520,000 answer not given
Amortizing prior service cost for pension plans will: Help Save & Exit Submi Multiple Choice Increase retained earnings and decrease accumulated other comprehensive income. Decrease retained earnings and decrease accumulated other comprehensive income. Increase retained earnings and increase accumulated other comprehensive income. Decrease retained earnings and increase accumulated other comprehensive income. 11 of 39 Next > S Prev Question no....pages Question no....pages -...pdf AncBook Air
Beginning plan Asset Balance = $ 100000 Ending Asset balance = $ 50000 Contribution to pension fund = $ 15000 Benefits paid = $ 500000 Calculate return on Plan Assets.