BANTRY Company reported the following in its 2021 annual report with respect to retirementbenefit obligations (i.e., Pension Obligations)Interest Revenue on Plan AssetsService CostInterest on Defined Benefit ObligationsQUESTION ONE: MCQ 3What is BANTRY Company's Pension Expense for 2021?A. $100,000B. $700,000C. $300,000D. $500,000E. None of these answers$600,000$300,000$400,000THE FOLLOWING INFORMATION RELATES TO MCQ 4QUESTION ONE: MCQ 4Suppose KINSALE Company had Pension Plan Assets on 1 January 2021 of $4,000,000 andPension Plan Assets on 31 December 2021 of $6,000,000.Assume that the 2021 Contributions to the Pension Fund were $3,400,000 while the BenefitsPaid from the Pension Fund were $4,600,000.What was KINSALE Company's return on Plan Assets for 2021?A. $2,700,000B. $2,900,000C. $3,100,000D. $3,200,000E. None of these answers

Lets understand the basics. There are generally two type of pension plan are there, (1) Defined…

in its 2021 annual report with respect benefit obligations (i.e., Pension Obligations) Interest Revenue on Plan Assets Service Cost Interest on Defined Benefit Obligations QUESTION ONE: MCQ 3 What is BANTRY Company's Pension Expense for 2021? A. $100,000 B. $700,000 C. $300,000 D. $500,000 E. None of these answers $600,000 $300,000 $400,000

in its 2021 annual report with respect benefit obligations (i.e., Pension Obligations) Interest Revenue on Plan Assets Service Cost Interest on Defined Benefit Obligations QUESTION ONE: MCQ 3 What is BANTRY Company's Pension Expense for 2021? A. $100,000 B. $700,000 C. $300,000 D. $500,000 E. None of these answers $600,000 $300,000 $400,000

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 4E

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The pension worksheet for Pharoah Company is shown below. Pharoah Company Items Balance, Jan. 1, 2025 Pension Worksheet General Journal Entries Memo Record Annual Pension Expense Pension Asset/ Projected Benefit Plan Cash Liability Obligation Assets ?? $184000 cr $137000 dr (a) Service Cost $52000 dr (b) Interest Cost 32000 dr (c) Actual Return 29000 cr (d) Contributions $57000 cr 57000 dr (e) Benefits 27000 dr 27000 cr Journal Entry for 2025 $55000 dr $57000 cr Balance, Dec. 31, 2025 ?? $211000 $167000 What is the Pension Asset/Liability balance on January 1, 2025? $44000 Liability $89000 Liability O $47000 Liability O $47000 Asset
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…
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The following information is available for the pension plan of Pharoah Company for the year 2025. Actual and expected return on plan assets Benefits paid to retirees Contributions (funding) Interest/discount rate Prior service cost amortization Projected benefit obligation, January 1, 2025 Service cost (a) Compute pension expense for the year 2025. Pension expense for 2025 $ $13,800 38,400 79,900 10% 7,800 452,000 54,700
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The actuary for the pension plan of Pharoah Inc. calculated the following net gains and losses Incurred during the Year 2025 As of January 1, 2025 2026 2027 2028 Other information about the company's pension obligation and plan assets is as follows. Year 2026 2027 2028 2025 2026 (Gain) or Loss $301,050 2027 2028 476,000 (209,300) (287.700) Projected Benefit Obligation $4,027.200 4,507,600 Pharoah 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, 2025. 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 5,029,300 Prepare a schedule which reflects the minimum amount of accumulated OCI (G/L) amortized as a component of net periodic pension expense for each of the years 2025, 2026…
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