The following information is related to the defined benefit pension plan of Xavier Company for 2012: Service cost $60,000 Contributions to pension plan 142,400 Benefits paid to retirees 150,000 Plan assets (fair value), January 1 740,000 Plan assets (fair value), December 31 850,000 Unamortized Prior Service Cost, January 1 160,000 Unamortized Prior Service Cost, December 31 110,000 Actual return on plan assets 150,000 PBO, January 1 900,000 PBO, December 31 960,000 ABO, December 31 890,000 Discount rate 10% Long-term expected return on plan assets 9% Required: 1. Using the above information calculate pension expense for 2012? 2. Will it be necessary for the company to report a minimum pension liability at Dec. 31, 2012? If so what is the amount
The following information is related to the defined benefit pension plan of Xavier Company for 2012: Service cost $60,000 Contributions to pension plan 142,400 Benefits paid to retirees 150,000 Plan assets (fair value), January 1 740,000 Plan assets (fair value), December 31 850,000 Unamortized Prior Service Cost, January 1 160,000 Unamortized Prior Service Cost, December 31 110,000 Actual return on plan assets 150,000 PBO, January 1 900,000 PBO, December 31 960,000 ABO, December 31 890,000 Discount rate 10% Long-term expected return on plan assets 9% Required: 1. Using the above information calculate pension expense for 2012? 2. Will it be necessary for the company to report a minimum pension liability at Dec. 31, 2012? If so what is the amount
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 7E
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Question
The following information is related to the defined benefit pension plan of Xavier Company for 2012:
Service cost $60,000
Contributions to pension plan 142,400
Benefits paid to retirees 150,000
Plan assets (fair value), January 1 740,000
Plan assets (fair value), December 31 850,000
Unamortized Prior Service Cost, January 1 160,000
Unamortized Prior Service Cost, December 31 110,000
Actual return on plan assets 150,000
PBO, January 1 900,000
PBO, December 31 960,000
ABO, December 31 890,000
Discount rate 10%
Long-term expected return on plan assets 9%
Required:
1. Using the above information calculate pension expense for 2012?
2. Will it be necessary for the company to report a minimum pension liability at Dec. 31, 2012? If so what is the amount.
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