Question 3 Data for Prince Harry's Inc.'s defined benefit plan for Year 5 follows: At January 1: Projected benefit obligation (PBO), $120,000 Plan assets at fair value (Assets), $90,000 Prior service cost (PSC) balance in accumulated other comprehensive income (AOCI), $25,000 For Year 5: • Service cost, $40,000 • Discount rate, 5% Expected rate of return on assets, 6% • Amortization of PSC, $2,500 Actual return on assets, $6,000 • PBO loss at year-end, $15,000 • Funding contribution at year-end, $40,000 • Benefits paid, $45,000 Complete the Year 5 pension spreadsheet below using the above information. Use parenthesis for negative amounts within categories, and for losses. Enter and extend your amounts to all appropriate cells. Enter 0 in any cell that does not require another entry.

Question 3 Data for Prince Harry's Inc.'s defined benefit plan for Year 5 follows: At January 1: Projected benefit obligation (PBO), $120,000 Plan assets at fair value (Assets), $90,000 Prior service cost (PSC) balance in accumulated other comprehensive income (AOCI), $25,000 For Year 5: • Service cost, $40,000 • Discount rate, 5% Expected rate of return on assets, 6% • Amortization of PSC, $2,500 Actual return on assets, $6,000 • PBO loss at year-end, $15,000 • Funding contribution at year-end, $40,000 • Benefits paid, $45,000 Complete the Year 5 pension spreadsheet below using the above information. Use parenthesis for negative amounts within categories, and for losses. Enter and extend your amounts to all appropriate cells. Enter 0 in any cell that does not require another entry.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question 3 Data for Prince Harry's Inc.'s defined benefit plan for Year 5 follows: At January 1: • Projected benefit obligation (PBO), $120,000 • Plan assets at fair value (Assets), $90,000 • Prior service cost (PSC) balance in accumulated other comprehensive income (AOCI), $25,000 For Year 5: • Service cost, $40,000 • Discount rate, 5% • Expected rate of return on assets, 6% • Amortization of PSC, $2,500 • Actual return on assets, $6,000 • PBO loss at year-end, $15,000 • Funding contribution at year-end, $40,000 • Benefits paid, $45,000 Complete the Year 5 pension spreadsheet below using the above information. Use parenthesis for negative amounts within categories, and for losses. Enter and extend your amounts to all appropriate cells. Enter 0 in any cell that does not require another entry.
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
Information about the defined benefit plan of the company are shown below Defined benefit obligation, January 1, 2021 5,500,000 Current service cost 330,000 Actual return on plan asset 170,000 Fair value on plan asset, January 1, 2021 4,000,000 Discount rate 5% What is the balance of the defined benefit obligation as of December 31, 2021?
Information on Complicated Company's defined benefit plan is as follows: Fair value of plan assets, Jan. 1 - P480,000; Return on plan assets (Actual rate of return for the period) - 10%; Contributions to the retirement fund during the year - P800,000; Benefits paid to retirees - P200,000. How much is the balance of the fair value of plan assets as of year-end?
Information about the defined benefit plan of the company are shown below: Fair value on plan assets, January 1, 2021 6,000,000 PV of Defined benefit obligation, January 1, 2021 7,800,000 Actual return on plan asset 180,000 Benefits paid during the year 1,000,000 Contributions during the year 800,000 Current service cost 800,000 Discount rate 5% What is the balance of the defined benefit liability as of December 31, 2021?
d. Prepare a reconciliation of the beginning and ending balances The following information is taken from the actuarial valuation report of Daddy, Inc.'s defined benefit plan: Fair value of plan assets, Jan. 1 Present value of defined benefit obligation, Jan. 1 Past service cost from plan amendment during the year (the vesting period is 5 yrs.)es 2,100,000 2,400,000 300,000 Current service cost 600,000 Benefits paid to retirees during the Actuarial gain during the period Return on plan assets during the period Contributions to the fund during the year Discount rate based on high quality corporate bonds year 450,000 15,000 270,000 480,000 12% Requirements: a. Determine net defined benefit liability/asset as of Jan. 1, 20x1 and Dec. 31, 20x1, respectively. b. Compute for the defined benefit cost in 20x1, showing amoúnts recognized in P/L and OCI, respectively. c. Provide the journal entries in 20x1. Prepare a reconciliation of the beginning and ending balances с. d. of net defined benefit…
The following relates to the define benefit obligation plan for Tokwa’t Baboy Inc. in 2016:Accrued benefit obligation, January 1 4,600,000Accrued benefit obligation, December 31 4,929,000FV of plan assets, January 1 5,035,000FV of plan assets, December 31 5,565,000Actuarial gain due to remeasurement of benefit obligation 32,500Employer contributions 425,000Benefits paid to retirees 390,000Discount rate 10% The service cost for current year would beA. P219,500 B. P226,500 C. P262,500 D. P291,500 . The actual return on plan assets for the year isA. P105,000 B. P495,000 C. P503,500 D. P512,000 What is the retirement benefit expense reported in profit or loss for the year 2016?A. P224,000 B. P242,000 C. P248,000 D. P284,000
The following information on a defined benefit plan is provided: FVPA, beg 2,800,000 PVDBO, beg 2,200,000 Current Service Cost 960,000 Past service cost (vesting for 5 years) 600,000 Benefits Paid 420,000 Return on Plan Assets 600,000 Contributions to the Plan 1,820,000 Increase due to Actuarial Assumptions 240,000 Expected Rate of Return 12% Discount Rate 10% The present value of economic benefits available in the form of refunds from the plan are 400,000 and 800,000, at the beginning and ending of the period. What amount of defined benefit…
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
The memorandum records ofGalindezTrading at January 1, 2021 show the following data: Define Benefit Obligation 2,600,000 Fair value of plan asset 3,000,000 The following information for 2021 is also provided: Service cost 800,000 Actual return on plan assets 300,000 Benefits paid 350,000 Contributions to the plan 780,000 Actuarial loss on remeasurement of defined benefit obligation 100,000 Discount rate 9% What are the balances of Benefit Obligation and Plan Asset at December 31, 2021? Group of answer choices 3,184,000 3,730,000 3,184,000 3,700,000 3,384,000 3,730,000 3,384,000 3,700,000
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.)
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

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