result of the termination benefits in 2020?retirement age specified in the entity's pension plan.offer expired on November 30, 2020.2. What amount should be recognized in profit or loss as aOn September 1, 2020, Howe Company offered specialtermination benefits to employees who had reached the earlyThe termination benefits consisted of lump sum and periodicreceive the usual early retirement pension benefits. TheAdditionally, the employees accepting the entity offerProblem 19-15 (AICPA Adapted)ayngfuture payments.ryAdditionally, the employees accepting the entity offerneive the usual early retirement pension benefits. Thed.Actual or reasonably estimated amounts on December 31,2020 relating to the employees accepting the offer are asfollows:475,000Lump sum payments made on January 1, 2021Present value of periodic payments of P60,000 annuallyfor 3 years which will begin January 1, 2022ge155,000Reduction of accrued pension cost on December 31,2020 for terminating employees45,0001. On December 31, 2020, what amount should be reportedas total liability for termination benefits?a. 475,000b. 585,000c. 630,000d. 655,000a. 630,000b. 475,000c. 585,000d.45,000

The pension benefit is the amount that the individual receives after retirement from employment at…

result of the termination benefits in 2020? 2. What amount should be recognized in profit or loss as a Problem 19-15 (AICPA Adapted) retirement age specified in the entity's pension plan. The termination benefits consisted of lump sum and periodic On September 1, 2020, Howe Company offered special Additionally, the employees accepting the entity offer termination benefits to employees who had reached the early . September 1, 2020, Howe Company offered special future payments. Additionally, the employees accepting the entity offer veceive the usual early retirement pension benefits. The offer expired on November 30, 2020. Actual or reasonably estimated amounts on December 31, 2020 relating to the employees accepting the offer are as follows: 475,000 Lump sum payments made on January 1, 2021 Present value of periodic payments of P60,000 annually for 3 years which will begin January 1, 2022 155,000 Reduction of accrued pension cost on December 31, 2020 for terminating employees 45,000 1. On December 31, 2020, what amount should be reported as total liability for termination benefits? a. 475,000 b. 585,000 C. 630,000 d. 655,000 a. 630,000 b. 475,000 C. 585,000 d. 45,000

result of the termination benefits in 2020? 2. What amount should be recognized in profit or loss as a Problem 19-15 (AICPA Adapted) retirement age specified in the entity's pension plan. The termination benefits consisted of lump sum and periodic On September 1, 2020, Howe Company offered special Additionally, the employees accepting the entity offer termination benefits to employees who had reached the early . September 1, 2020, Howe Company offered special future payments. Additionally, the employees accepting the entity offer veceive the usual early retirement pension benefits. The offer expired on November 30, 2020. Actual or reasonably estimated amounts on December 31, 2020 relating to the employees accepting the offer are as follows: 475,000 Lump sum payments made on January 1, 2021 Present value of periodic payments of P60,000 annually for 3 years which will begin January 1, 2022 155,000 Reduction of accrued pension cost on December 31, 2020 for terminating employees 45,000 1. On December 31, 2020, what amount should be reported as total liability for termination benefits? a. 475,000 b. 585,000 C. 630,000 d. 655,000 a. 630,000 b. 475,000 C. 585,000 d. 45,000

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 13E

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On September 1, 2020, Howe Company offered special termination benefits to employees who had reached the early retirement age specified in the entity's pension plan. The termination benefits consisted of lump sum and periodic future payments. Additionally, the employees accepting the entity offer receive the usual early retirement pension benefits. The offer expired on November 30, 2020. Actual or reasonably estimated amounts on December 31, 2020 relating to the employees accepting the offer are as follows: Lump sum payments made on January 1, 2021 475,000 Present value of periodic payments of P60,000 annually for 3 years which will begin January 1, 2022 Reduction of accrued pension cost on December 31,2020 for terminating employees 155,000 45,000 2. What amount should be recognized in profit or loss as a result of the termination benefits in 2020? a. 630,000 b. 475,000 C. 585,000 d. 45,000
Baron Company adopted a defined benefit pension plan 0n January 1, 2018. The following information pertains tothe pension plan for 2019 and 2020: 1. Compute the amount of Baron’s pension expense for 2019 and 2020. 2. Prepare the journal entries to record the pension expense for 2019 and 2020.
The following are made available for the defined benefit pension plan of Pores Corporation as of December 31, 2019: Fair value of Plan asset, Jan 1 Total actual return on plan asset Payment made to retirees Payment of pension benefit settled on active employees Contribution during the year P3,000,000 ? 600,000 400,000 500,000 6% Discount rate a. What is the fair value of plan asset as of December 31, 2019? b. What amount of the total actual return on plan asset should be included in profit or loss? c. What amount of the total actual return on plan asset should be reported in other comprehensive income?
On September 1, 2021, Di Lion Corporation offered special termination benefits to employees who had reached the early retirement age specified in the company’s pension plan. The termination benefits consisted of lump-sum and periodic future payments. Additionally, the employees accepting the company offer receive the usual early retirement pension benefits. The offer expired on November 30, 2021. Actual or reasonably estimated amounts at December 31, 2021 relating to the employees accepting the offer are as follows:A. Lump-sum payments totaling P475,000 were made on January 1, 2022.B. Periodic payments totaling P60,000 annually for 3 years will begin January 1, 2023. The present value at December 31, 2011 of these payments was P155,000.C. Reduction of accrued pension costs at December 31, 2021 of these payments was P45,000. a. At December 31, 2021, Di Lion should report a total liability for special termination benefits of: b. What amount should be reported as loss on…
Sarasota Company received the following selected information from its pension plan trustee concerning the operation of the company's defined benefit penslon plan for the year ended December 31. 2020. January 1, 2020 December 31, 2020 Projected benefit obligation $1.514.000 $1.542.000 Market-related and fair value of planassets 805.000 1138,500 Accumulated beneft obligation 1,625,000 1,747,400 Accumulated OCI (G/L)-Net gain (201.400 ) The service cost component of pension expense for employee services rendered in the current year amounted to $78,000 and the amortization of prior service.cost was $122,400. The company's actual funding (contributions) of the planin 2020 amounted to $253,000. The expected return on plan assets and the actual rate were both 10%, the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of S1.224,000 on January 1. 2020. Assume no benefits paid in 2020. (a) Determine the amounts of the components of pension…
Bonita Company received the following selected information from its pension plan trustee concerning the operation of the company’s defined benefit pension plan for the year ended December 31, 2020. January 1, 2020 December 31, 2020 Projected benefit obligation $1,499,000 $1,527,000 Market-related and fair value of plan assets 802,000 1,127,200 Accumulated benefit obligation 1,622,000 1,742,500 Accumulated OCI (G/L)—Net gain 0 (199,900 ) The service cost component of pension expense for employee services rendered in the current year amounted to $78,000 and the amortization of prior service cost was $120,500. The company’s actual funding (contributions) of the plan in 2020 amounted to $245,000. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,205,000 on January 1, 2020. Assume no benefits paid in 2020.…
Crane Company received the following selected information from its pension plan trustee concerning the operation of the company’s defined benefit pension plan for the year ended December 31, 2020. January 1, 2020 December 31, 2020 Projected benefit obligation $1,499,000 $1,527,000 Market-related and fair value of plan assets 802,000 1,127,200 Accumulated benefit obligation 1,622,000 1,742,500 Accumulated OCI (G/L)—Net gain 0 (199,900 ) The service cost component of pension expense for employee services rendered in the current year amounted to $78,000 and the amortization of prior service cost was $120,500. The company’s actual funding (contributions) of the plan in 2020 amounted to $245,000. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,205,000 on January 1, 2020. Assume no benefits paid in 2020.…
Crane Company received the following selected information from its pension plan trustee concerning the operation of the company’s defined benefit pension plan for the year ended December 31, 2020. January 1, 2020 December 31, 2020 Projected benefit obligation $1,499,000 $1,527,000 Market-related and fair value of plan assets 802,000 1,127,200 Accumulated benefit obligation 1,622,000 1,742,500 Accumulated OCI (G/L)—Net gain 0 (199,900 ) The service cost component of pension expense for employee services rendered in the current year amounted to $78,000 and the amortization of prior service cost was $120,500. The company’s actual funding (contributions) of the plan in 2020 amounted to $245,000. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,205,000 on January 1, 2020. Assume no benefits paid in 2020.…
Crane Company received the following selected information from its pension plan trustee concerning the operation of the company’s defined benefit pension plan for the year ended December 31, 2020. January 1, 2020 December 31, 2020 Projected benefit obligation $1,499,000 $1,527,000 Market-related and fair value of plan assets 802,000 1,127,200 Accumulated benefit obligation 1,622,000 1,742,500 Accumulated OCI (G/L)—Net gain 0 (199,900 ) The service cost component of pension expense for employee services rendered in the current year amounted to $78,000 and the amortization of prior service cost was $120,500. The company’s actual funding (contributions) of the plan in 2020 amounted to $245,000. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,205,000 on January 1, 2020. Assume no benefits paid in 2020.…
Crane Company received the following selected information from its pension plan trustee concerning the operation of the company’s defined benefit pension plan for the year ended December 31, 2020. January 1, 2020 December 31, 2020 Projected benefit obligation $1,499,000 $1,527,000 Market-related and fair value of plan assets 802,000 1,127,200 Accumulated benefit obligation 1,622,000 1,742,500 Accumulated OCI (G/L)—Net gain 0 (199,900 ) The service cost component of pension expense for employee services rendered in the current year amounted to $78,000 and the amortization of prior service cost was $120,500. The company’s actual funding (contributions) of the plan in 2020 amounted to $245,000. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,205,000 on January 1, 2020. Assume no benefits paid in 2020. (c)…
Crane Company received the following selected information from its pension plan trustee concerning the operation of the company’s defined benefit pension plan for the year ended December 31, 2020. January 1, 2020 December 31, 2020 Projected benefit obligation $1,499,000 $1,527,000 Market-related and fair value of plan assets 802,000 1,127,200 Accumulated benefit obligation 1,622,000 1,742,500 Accumulated OCI (G/L)—Net gain 0 (199,900 ) The service cost component of pension expense for employee services rendered in the current year amounted to $78,000 and the amortization of prior service cost was $120,500. The company’s actual funding (contributions) of the plan in 2020 amounted to $245,000. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,205,000 on January 1, 2020. Assume no benefits paid in 2020.…
The following selected post-retirement benefit accounts were lifted from the 2021 unadjusted trial balance of EMM Corp. No adjusting entry had been made yet at year end in relation to the post-retirement benefits related accounts. Prepaid Pension Expense, January 1, 2021 ₱ 493,900Pension expense for 2021, amount contributed to the plan ₱ 500,000Additional information:The memorandum account balances and other off-books transactions are as follows:Plan asset at fair market value, January 1, 2021 ₱ 3,245,400Accumulated benefit obligation at present value, January 1, 2021 ₱ 2,751,500Payments to retirees at scheduled retirement in 2021 ₱ 350,000Payments to early retirees (settlement price) in 2021 ₱ 300,000Carrying value of accrued benefits of early retirees in 2021 ₱ 220,000Current service cost ₱ 535,000Past service cost recognized in the current year ₱ 275,000Settlement rate 12%Plan asset at fair market value, December 31, 2021 ₱ 3,569,900Accumulated benefit obligation at present value,…