11 Information on Chang Company’s defined benefit plan is shown below: Present value of benefit obligation, January 1 480,000 Current service cost 120,000 Interest cost 10% Benefits paid to retirees 200,000 Decrease in present value of defined benefit obligation during the year due to changes in actuarial assumption 40,000 How much is the ending balance of the present value of defined benefit obligation? Group of answer choices 448,000 608,000 408,000 480,000

11 Information on Chang Company’s defined benefit plan is shown below: Present value of benefit obligation, January 1 480,000 Current service cost 120,000 Interest cost 10% Benefits paid to retirees 200,000 Decrease in present value of defined benefit obligation during the year due to changes in actuarial assumption 40,000 How much is the ending balance of the present value of defined benefit obligation? Group of answer choices 448,000 608,000 408,000 480,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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
The actuarial valuation report of an entity shows the following information: Present value of defined benefit obligation, Jan. 1 280,000 Discount rate 14% Benefits paid to retirees Actuarial gain Present value of defined benefit obligation, Dec. 31 90,000 60,000 210,000 How much is the current service cost? a. 40,800 b. 44,800 c. 48,200 d. 79,200 2.
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…
1. Information on an entity's defined benefit obligation is as follows Present value of defined benefit obligation, lan 1 130,000 Present value of defined obligation, Dec. 31 110,600 Discount rate 12% Benefits paid to retirees 110,000 Actuarial loss 50,000 How much is the current service cost? O r000 O s000 O B0,000 O 25,000
Information on Chang Company's defined benefit plan is shown below: Present value of benefit obligation, January 1 480,000 Current service cost 120,000 Interest cost 10% Benefits paid to retirees 200,000 Decrease in present value of defined benefit obligation during the year due to changes in 40,000 actuarial assumption How much is the ending balance of the present value of defined benefit obligation?
Question 9 Oriole Company provides the following information about its defined benefit pension plan for the year 2020. Service cost $91,700 Contribution to the plan 104,300 Prior service cost amortization 10,800 Actual and expected return on plan assets 65,300 Benefits paid 39,700 Plan assets at January 1, 2020 633,400 Projected benefit obligation at January 1, 2020 711,600 Accumulated OCI (PSC) at January 1, 2020 148,000 Interest/discount (settlement) rate 10 % General Journal Entries Memo Record Items AnnualPension Expense Cash OCIPrior Service Cost Pension Asset/Liability Projected BenefitObligation PlanAssets (b) The parts of this question must be completed in order. This part will be available when you complete the part above.
QUESTION 6 At January 1 2017 Hennein Oompanyhad plan assets of $280 000 and a projected benefit aligation of the same amount During 2017 service cost was $27 500 and settlement rate was 10% actual and expected return on plan assets was $25 000 contribuutions were $20 000 and benefits paid were $17 500 How much was Hennien Company's Pension Expense?
The actuarial valuation report of an entity shows the following information: Present value of defined benefit obligation, Jan. 1 340,000 Current service cost 30,000 Discount rate 10% Benefits paid to retirees 100,000 Actuarial gain 60,000 How much is the year-end balance of the present value of defined benefit obligation? a. 210,000 b. 244,000 c. 304,000 d. 364,000 The actuarial valuation report of an entity shows the following information: Present value of defined benefit obligation, Jan. 1 280,000 Discount rate 14% Benefits paid to retirees 90,000 Actuarial gain 60,000 Present value of defined benefit obligation, Dec. 31 210,000 How much is the current service cost? a. 40,800 b. 44,800 c. 48,200 d. 79,200
19 The memorandum records of Galindez Trading at January 1, 2021 show the following data: Define Benefit Obligation 2,600,000 Fair value of plan asset 3,000,000 The following information for 2021 is also provided: Service cost 800,000 Actual return on plan assets 300,000 Benefits paid 350,000 Contributions to the plan 780,000 Actuarial loss on remeasurement of defined benefit obligation 100,000 Discount rate 9% How much is the retirement benefit cost that is taken to other comprehensive income for the year 2021? Group of answer choices 130,000 loss 130,000 gain 70,000 gain 70,000 loss
NOTE 17: EMPLOYEE BENEFIT PLANS (in part) ($ in millions) Changes in projected benefit obligation: Obligation at beginning of period Service cost Interest cost Pension Benefits 2020 2019 $ 648 1 $ 637 1 31 34 Actuarial (gain) loss Benefits paid Obligation at end of period Change in plan assets: 54 37 (50) (50) $ 684 $ 659 Fair value of plan assets at beginning of period Actual return (loss) on plan assets* $ 496 $ 431 70 52 Employer contribution 24 74 Benefits paid (50) (50) Fair value of plan assets at end of period 540 507 Net liability recognized at end of period $ (144) $ (152) *Expected return $30 and $29 in 2020 and 2019, respectively 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 account had a balance of $350 million at the beginning of the…
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, $49) Cash contributions Pension benefits paid Balance, December 31, 2024 January 1, 2024, balances: Pension asset ($ in millions) $ 680 70 34 (18) (34) $ 732 ($ in millions) $ 740 44 85 (34) $ 835 ($ in millions) $ 60 30 124 Prior service cost-AOCI (amortization $6 per year) Net gain-AOCI (any amortization over 10 years) Required: Prepare a pension spreadsheet to show the relationship among the PBO, plan assets, prior service cost, the net gain, pension expense, and the net pension asset.
NOTE 17: EMPLOYEE BENEFIT PLANS (in part) ($ 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…

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bartleby, a Learneo, Inc. business

Present value of benefit obligation, January 1	480,000
Current service cost	120,000
Interest cost	10%
Benefits paid to retirees	200,000
Decrease in present value of defined benefit obligation during the year due to changes in actuarial assumption	40,000