The Pension Expense in a pension plan for the year were recorded at $856,800. In addition, an amount of $161,400 had been debited to the Other Comprehensive Income account to record all actuarial losses for the year. In addition, the company had contributed a cash amount of $350,000 to the Plan Assets. What would have been the amount recorded as Pension expenses for 2019 if the company were reporting under ASPE? Select one: a. $856,800.

The Pension Expense in a pension plan for the year were recorded at $856,800. In addition, an amount of $161,400 had been debited to the Other Comprehensive Income account to record all actuarial losses for the year. In addition, the company had contributed a cash amount of $350,000 to the Plan Assets. What would have been the amount recorded as Pension expenses for 2019 if the company were reporting under ASPE? Select one: a. $856,800.

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

See similar textbooks

Similar questions

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.
Given the following information for Tyler Companys pension plan at the beginning of the year, calculate the corridor, excess net loss (gain), and amortized net loss (gain). Assume an average remaining service life of 15 years.
The actuary for the pension plan of Buffalo Inc. calculated the following net gains and losses. Incurred during the Year (Gain) or Loss 2020 $302,700 2021 476,700 2022 (209,000) 2023 (288,200) Other information about the company’s pension obligation and plan assets is as follows. As of January 1, Projected BenefitObligation Plan Assets(market-related asset value) 2020 $3,993,500 $2,394,800 2021 4,542,200 2,203,200 2022 4,952,900 2,575,400 2023 4,228,400 3,066,100 Buffalo Inc. has a stable labor force of 400 employees who are expected to receive benefits under the plan. The total service-years for all participating employees is 4,400. The beginning balance of accumulated OCI (G/L) is zero on January 1, 2020. The market-related value and the fair value of plan assets are the same for the 4-year period. Use the average remaining service life per employee as the basis for amortization.Compute the…
Under the defined-benefit pension plan for a company, the expected return on plan assets is $124,000 and actual return on plan assets is $269,000 in 2021. To record the unexpected gain/loss due to asset returns, the company will (enter 1, 2, 3, or 4 that represents the correct answer): Debit Other Comprehensive Income-Gain/Loss Credit Pension Expense Debit Pension Expense Debit Plan Assets
$1,000,000 500,000 1,840,000 250,000 120,000 10% Service cost Actual return on plan assets Annual contribution to the plan Amortization of prior service cost Benefits paid to retirees Settlement rate Expected rate of return on plån assets 8% Balances at 12/31/2020 are: Prior Service Cost Projected Benefit Obligation Plan Assets 1,250,000 Dr 8,000,000 Cr 5,500,000 Dr
The following information relates to Schmidt Sausage Company's defined benefit pension plan during the current reporting year: Plan assets beginning of the year Expected return on plan assets Actual return on plan assets Cash contributions Amortization of net loss Retiree benefits ($ in millions) Pension plan assets of the year $ 580 58 49 78 9 10 Required: Determine the amount of pension plan assets at fair value on December 31. Note: Enter your answers in millions.
Boey Company reported net income of $25,000 in 2021. It had the following amounts related to its pension plan in 2021: actuarial liability gain $10,000, unexpected asset loss $14,000, accumulated other comprehensive income (G/L) (beginning balance), zero. Determine for 2021 (a) Boey's other comprehensive income, and (b) comprehensive income.
The actuary for the pension plan of Gustafson Inc. calculated the following net gains and losses. IncurredDuring the Year (Gain) or Loss 2020 $300,000 2021 480,000 2022 (210,000) 2023 (290,000) Other information about the company's pension obligation and plan assets is as follows. As of January 1, Projected BenefitObligation Plan Assets(market-related asset value) 2020 $4,000,000 $2,400,000 2021 4,520,000 2,200,000 2022 5,000,000 2,600,000 2023 4,240,000 3,040,000 Gustafson Inc. has a stable labor force of 400 employees who are expected to receive benefits under the plan. The total service-years for all participating employees is 5,600. The beginning balance of accumulated OCI (G/L) is zero on January 1, 2020. The market-related value and the fair value of plan assets are the same for the 4-year period. Use the average remaining service life per employee as the basis for amortization. Instructions (Round to the nearest dollar.) Prepare a…
The following information is available for the pension plan of Windsor Company for the year 2020. Compute pension expense for the year 2020: Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2020. Actual and expected return on plan assets $ 14,900 Benefits paid to retirees 42,000 Contributions (funding) 83,300 Interest/discount rate 9 % Prior service cost amortization 7,700 Projected benefit obligation, January 1, 2020 511,000 Service cost 55,100
A company's pension plan fund had a balance of $500,000 on January 1, 2019 and $650,000 on December 31, 2019. There were deposits of $50,000 from members' contributions on each of March 1, 2019 and August 1, 2019. There were withdrawals due to retirements of $20,000 at the end of June and $25,000 at the end of November. Calculate the approximate dollar-weighted rate of return for the year. You can count partial parts of the year in months. (Answer to 4 decimal places/a percent to 2 decimal places.)
The following data relate to the operation of Kramer Co.'s pension plan in 2021. The pension worksheet for 2020 is provided in P20.10. Service cost $59,000 Actual return on plan assets 32,000 Amortization of prior service cost 28,000 Annual contributions 51,000 Benefits paid retirees 27,000 Average service life of all employees 25 years For 2021, Kramer will use the same assumptions as 2020 for the expected rate of returns on plan assets. The settlement rate for 2021 is 10%. Instructions Prepare a pension worksheet for 2021 and accompanying computations and amortization of the loss, if any, in 2021 using the corridor approach. Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31. Indicate the pension amounts reported in the financial statements.
The following information regarding Buffalo Ltd.’s defined benefit pension plan was taken from the company’s records for 2020: Defined Benefit Obligation, January 1 $9,941,000 Actual return on plan assets 434,000 Benefits paid to retirees 848,000 Current year service cost 1,210,000 Interest cost 496,000 Employer contributions for the year 998,000 Pension Plan Assets, January 1 8,832,000 Prepare a continuity schedule for the DBO for 2020. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)