Dunder Miflin uses defined contribution plans for their employees. A formula that is used in a defined-contribution plan

Indicate by letter whether each of the events listed below increase (l), decreases (D), or has no effect (N) on an employer’s projected benefit obligation.                                                                               Events Interest cost.                                                                                                                  ________ Amortization of prior service cost.                                                                                 ________ A decrease in the average life expectancy of employees.                                             ________ An increase in the average life expectancy of employees.                                         ________ A plan amendment that increases benefits is made retroactive to prior years.             ________ An increase in the actuary’s assumed discount rate.                                                     ________ Cash contributions to the pension fund by the employer.…

In a defined benefits retirement plan, the employer bears the investment risks in funding a future retirement income benefit.   ____   12.   The cost of replacing an engine in a truck is an example of ordinary maintenance that should be expensed instead of capitalized.   ____   13.   For proper matching of revenues and expenses, the estimated cost of fringe benefits must be recognized as an expense of the period during which the employee earns the benefits.   ____   14.   Medicare taxes are paid by both the employee and the employer.   ____   15.   Costs associated with normal research and development activities should be treated as  intangible assets. True and false questions....

Explain how distributions from a qualified pension plan, which are made in the form of annuity payments, are reported by an employee under the following circumstances: No employee contributions are made to the plan. The pension plan provides for matching employee contributions. a. b. C a. Explain how distributions from a qualified pension plan, which are made in the form of annuity payments, are reported by an employee when no employee contributions are made to the plan. O A. The distributions are only taxable to the employee once the taxpayer is retired. O B. The distributions are only taxable to the employee once the taxpayer reached 65 of age. O C. The distributions are fully taxable to the employee when the payment is received. O D. The distributions are not taxable to the employee when the payment is received.

Which of the following statements are reasons employers may choose to delay eligibility of employees to participate in a retirement plan? 1.           Employees do not start earning benefits until they become plan participants (except in defined benefit plans, which may count prior service). 2.           Since turnover is generally highest for employees in their first few years of employment and for younger employees, it makes sense from an administrative standpoint to delay their eligibility.   A. 1 only.   B. 2 only.   C. Both 1 and 2.   D. Neither 1 nor 2.

Indicate which federal department or agency would be responsible in the following scenarios: a. An employee wants to retire and apply for Canada Pension Plan benefit b. The new type of earning introduced in the company but not sure if it is insurable -

What is an accurate description of vested rights concerning a pension plan? Question 5 options: a) Rights to receive accrued interest over the life of the plan b) Rights of survivorship to receive at least the interest accrued if the deceased at time of death c) Rights to at least 50% of the initial lump sum payment d) Rights to pension benefits based on employee's/firm's contributions

35. In a defined-benefit plan, a formula is used that defines the contribution the employer is to make; no promise is made concerning the ultimate benefits to be paid out to the employees. requires that the benefit of gain or the risk of loss from the assets contributed to the pension plan be borne by the employee. defines the benefits that the employee will receive at the time of retirement. requires that pension expense and the cash funding amount be the same.

33. In a defined-benefit plan, the process of funding refers to determining the projected benefit obligation. determining the amount that might be reported for pension expense. determining the accumulated benefit obligation. making the periodic contributions to a funding agency to ensure that funds are available to meet retirees' claims.

Discuss the role that pension funds play in company pension plans. What benefits accrue to companies who elect to use pension funds? How does the use of a pension fund change the accounting that must be done with respect to employee pension amounts?