FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- jarrow_forwardProblem 17-6 (Algo) Determine the PBO; plan assets; pension expense; two years (LO17-3, 17-4, 17-6] Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2021. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10% rate of return. The actual return was also 10% in 2021 and 2022.* A consulting firm, engaged as actuary, recommends 5% as the appropriate discount rate. The service cost is $140,000 for 2021 and $220,000 for 2022. Year-end funding is $150,000 for 2021 and $160,000 for 2022. No assumptions or estimates were revised during 2021. * We assume the estimated return was based on the actual return on similar investments at the inception of the plan and that, since the estimate didn't change, that also was the actual rate in 2022. Required: Calculate each of the following amounts as of both December 31, 2021, and December 31, 2022: (Enter your answers in…arrow_forwardUnc.6arrow_forward
- I need help computing the amount of accumulated other comprehensive incomearrow_forwardKnowledge Check 01Calder Company has a defined benefit pension plan. Pension-related data for the current calendar year are shown below: Average remaining service period of active employees 12 years Net gain, January 1 $ 214,600 PBO, January 1 1,630,000 Plan assets, January 1 1,930,000 What is the amount of the amortization of the net loss or gain that should be included as a component of pension expense for the current year?arrow_forwardPlease Introduction and explanation please without plagiarism pleasearrow_forward
- Queation 18 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…arrow_forwardQuestion 8 of 20 View Policies Current Attempt in Progress On January 1, 2022, Wildhorse Co. has the following balances: Projected benefit obligation Fair value of plan assets The settlement rate is 10%. Other data related to the pension plan for 2022 are: Amortization of unrecognized prior service costs Benefits paid Actual return on plan assets Amortization of unrecognized net gain O $3091400. O $3109000. O $3521800. O $3131100. $2760000 2363000 $236300 77900 390700 141200 305000 The balance of the projected benefit obligation at December 31, 2022 is 27900arrow_forwardProblem 17-161 The following information relates to Hatami Company's defined benefit pension plan during the current reporting year: Plan assets at fair value, January 1 Expected return on plan assets Actual return on plan assets Contributions to the pension fund (end of year) Amortization of net loss $680, 000,000 58,000,000 48,000,000 98,000,000 Pension benefits paid (end of year) Pension expense 40, 000,000 68,000,000 Required: Determine the balance of pension plan assets at fair value on December 31. (Enter your answers in millions. Amounts to be deducted should be indicated with a minus sign.) Pension Plan (S in millions) Plan assets beginning of the year Plan assets end of the yeararrow_forward
- Current Attempt in Progress The actuary for the pension plan of Oriole Company calculated the following net gains and losses: Incurred during the Year (Gain) or Loss 2025 $(675,000) 2026 246,000 2027 973,000arrow_forwardPlz answer fast without plagiarism please ?arrow_forwardShow a proper spreadhseet formatted properlyarrow_forward
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