Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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Chapter 19, Problem 2MC
To determine
Identify the correct option for the given statement.
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Sandhill Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for
the years 2025 and 2026.
Projected benefit obligation, January 1
Plan assets (fair value and market-related value), January 1
Pension asset/liability, January 1
Prior service cost, January 1
Service cost
Settlement rate
Expected rate of return
Actual return on plan assets
Amortization of prior service cost
Annual contributions
Benefits paid retirees
Increase in projected benefit obligation
due to changes in actuarial assumptions
Accumulated benefit obligation at December 31
Average service life of all employees
Vested benefit obligation at Decem -31
(a1)
2025
Amortization of the loss $
$596,000
411,600
184,400 Cr.
161,400
40,300
10%
10%
35,800
69,500
97,300
31,200
87,100
720,200
Calculate the amortization of the loss (2026) using the corridor approach.
2026
$58,800
10%
10%
61,100
50,500
80,500
53,900
0
792,000
20 years
463,600
Cullumber Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for
2025 and 2026.
Plan assets (fair value), December 31
Projected benefit obligation, January 1
Pension asset/liability, January 1
Prior service cost, January 1
Service cost
Actual and expected return on plan assets
Amortization of prior service cost
Contributions (funding)
Accumulated benefit obligation, December 31
Interest/settlement rate
No benefits were paid in 2025 or 2026.
(a)
Compute pension expense for 2025 and 2026.
Pension expense for 2025
Pension expense for 2026
$
$
2025
$873,750
875,000
175,000 Cr.
312,500
75,000
30,000
12,500
143,750
625,000
9%
2026
$1,061,250
1,000,000
?
300,000
112,500
37,500
15,000
150,000
687,500
9%
Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2024 (the end of Beale's fiscal year), the
following pension-related data were available:
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, $44)
Cash contributions
Pension benefits paid
Balance, December 31, 2024
January 1, 2024, balances:
Pension asset
Prior service cost-AOCI (amortization $7 per year)
Net gain-AOCI (any amortization over 10 years)
Req 1 to 3
($ in millions)
$ 600
39
Req 4
80
(29)
$ 690
Complete this question by entering your answers in the tabs below.
Req 5
Required:
1. to 3. Prepare the journal entries required for the pension during 2024.
4. Determine the balances at December 31, 2024, in the net gain-AOCI, and prior service…
Chapter 19 Solutions
Intermediate Accounting: Reporting And Analysis
Ch. 19 - Prob. 1GICh. 19 - Prob. 2GICh. 19 - Prob. 3GICh. 19 - Prob. 4GICh. 19 - Prob. 5GICh. 19 - Prob. 6GICh. 19 - Prob. 7GICh. 19 - Prob. 8GICh. 19 - Prob. 9GICh. 19 - Prob. 10GI
Ch. 19 - Prob. 11GICh. 19 - Prob. 12GICh. 19 - Prob. 13GICh. 19 - Prob. 14GICh. 19 - Prob. 15GICh. 19 - Prob. 16GICh. 19 - Prob. 17GICh. 19 - Prob. 18GICh. 19 - Prob. 19GICh. 19 - Prob. 20GICh. 19 - Prob. 21GICh. 19 - Prob. 22GICh. 19 - Prob. 23GICh. 19 - The actuarial present value of all the benefits...Ch. 19 - Prob. 2MCCh. 19 - Prob. 3MCCh. 19 - Prob. 4MCCh. 19 - Prob. 5MCCh. 19 - Prob. 6MCCh. 19 - Which of the following is not a component of...Ch. 19 - Prob. 8MCCh. 19 - Prob. 9MCCh. 19 - Prob. 10MCCh. 19 - Prob. 1RECh. 19 - Prob. 2RECh. 19 - Pinecone Company has plan assets of 500,000 at the...Ch. 19 - Prob. 4RECh. 19 - Prob. 5RECh. 19 - Prob. 6RECh. 19 - Prob. 7RECh. 19 - Prob. 8RECh. 19 - Given the following information for Tyler Companys...Ch. 19 - At the beginning of Year 1, Cactus Company has...Ch. 19 - Prob. 11RECh. 19 - Prob. 1ECh. 19 - Prob. 2ECh. 19 - Prob. 3ECh. 19 - Prob. 4ECh. 19 - Prob. 5ECh. 19 - Prob. 6ECh. 19 - Prob. 7ECh. 19 - Prob. 8ECh. 19 - Prob. 9ECh. 19 - Prob. 10ECh. 19 - Prob. 11ECh. 19 - Prob. 12ECh. 19 - Prob. 13ECh. 19 - Refer to the information provided in E19-13....Ch. 19 - Prob. 15ECh. 19 - Prob. 16ECh. 19 - Prob. 1PCh. 19 - Prob. 2PCh. 19 - Prob. 3PCh. 19 - Prob. 4PCh. 19 - Prob. 5PCh. 19 - Prob. 6PCh. 19 - Prob. 7PCh. 19 - Prob. 8PCh. 19 - Prob. 9PCh. 19 - Prob. 10PCh. 19 - Prob. 11PCh. 19 - Prob. 12PCh. 19 - Prob. 1CCh. 19 - Prob. 2CCh. 19 - Prob. 3CCh. 19 - Prob. 4CCh. 19 - Prob. 5CCh. 19 - Prob. 6CCh. 19 - Prob. 7CCh. 19 - Prob. 9C
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