Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2024. 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 2024 and 2025.* A consulting firm, engaged as actuary, recommends 5% as the appropriate discount rate. The service cost is $320,000 for 2024 and $400,000 for 2025. Year- end funding is $330,000 for 2024 and $340,000 for 2025. No assumptions or estimates were revised during 2024.
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- Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2024. 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 2024 and 2025.* A consulting firm, engaged as actuary, recommends 5% as the appropriate discount rate. The service cost is $280,000 for 2024 and $370,000 for 2025. Year-end funding is $290,000 for 2024 and $300,000 for 2025. No assumptions or estimates were revised during 2024. *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 2025. Required: Calculate each of the following amounts as of both December 31, 2024, and December 31, 2025: Note: Enter your answers in thousands (i.e., 200,000 should be entered as 200). Enter a liability as a negative amount. 1.…Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2024. 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 2024 and 2025.* A consulting firm, engaged as actuary, recommends 6% as the appropriate discount rate. The service cost is $200,000 for 2024 and $300,000 for 2025. Year-end funding is $210,000 for 2024 and $220,000 for 2025. No assumptions or estimates were revised during 2024. "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 2025. Required: Calculate each of the following amounts as of both December 31, 2024, and December 31, 2025: Note: Enter your answers in thousands (l.e., 200,000 should be entered as 200). Enter a llability as a negative amount. December…Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2024. 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 2024 and 2025.* A consulting firm, engaged as actuary, recommends 4% as the appropriate discount rate. The service cost is $150,000 for 2024 and $280,000 for 2025. Year-end funding is $160,000 for 2024 and $170,000 for 2025. No assumptions or estimates were revised during 2024. *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 2025. Required: Calculate each of the following amounts as of both December 31, 2024, and December 31, 2025: Note: Enter your answers in thousands (i.e., 200,000 should be entered as 200). Enter a liability as a negative amount. X Answer…
- Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2024. 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 2024 and 2025. A consulting firm, engaged as actuary, recommends 5% as the appropriate discount rate. The service cost is $160,000 for 2024 and $210,000 for 2025. Year-end funding is $170,000 for 2024 and $180,000 for 2025. No assumptions or estimates were revised during 2024. *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 2025. Required: Calculate each of the following amounts as of both December 31, 2024, and December 31, 2025: Note: Enter your answers in thousands (i.e., 200,000 should be entered as 200). Enter a liability as a negative amount. 1…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 thousands (i.e., 200,000 should be entered as 200).) 1. Projected benefit obligation 2. Plan assets 3.…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. A consulting firm, engaged as actuary, recommends 6% as the appropriate discount rate. The service cost is $150,000 for 2021 and $200,000 for 2022. Year-end funding is $160,000 for 2021 and $170,000 for 2022. No assumptions or estimates were revised during 2021.Required:Calculate each of the following amounts as of both December 31, 2021, and December 31, 2022:1. Projected benefit obligation.2. Plan assets.3. Pension expense.4. Net pension asset or net pension liability.
- 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. A consulting firm, engaged as actuary, recommends 6% as the appropriate discount rate. The service cost is $150,000 for 2021 and $200,000 for 2022. Year-end funding is $160,000 for 2021 and $170,000 for 2022. No assumptions or estimates were revised during 2021. What is the net pension asset or net pension liability for December 31, 2021 and December 31, 2022?Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2018. The provisions of the planwere not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assetsto earn a 10% rate of return. A consulting firm, engaged as actuary, recommends 6% as the appropriate discountrate. The service cost is $150,000 for 2018 and $200,000 for 2019. Year-end funding is $160,000 for 2018 and$170,000 for 2019. No assumptions or estimates were revised during 2018.Required:Calculate each of the following amounts as of both December 31, 2018, and December 31, 2019:1. Projected benefit obligation2. Plan assets3. Pension expense4. Net pension asset or net pension liabilitySuperman Inc. maintains a defined benefit pension plan. At the beginning of 2022 the pension plan has assets of $700,000 and a defined benefit obligation of $900,000. The discount rate chosen by the actuary is 9%. Current service costs for 2022 are $60,000 while some past service costs arose due to a plan amendment at the beginning of the year of $20,000. In 2022, the company contributed $75,000 to the plan at the end of the year. The benefits paid out of the plan to pensioners during 2022 amounted to $50,000 and this occurred evenly throughout the year. The plan assets at the end of the year were actually $802,250 Complete a worksheet that will calculate the movement in all company and pension plan related accounts. Record the journal entry needed to account for the pension expense in 2022 assuming Superman uses ASPE and then redo the entry assuming IFRS is used. Identify the pension plan's funded status and the asset or liability reported on the Balance Sheet at December 31, 2022.
- On January 1, 2024, Onyeocha Climbing Academy instituted a defined benefit pension plan for its employees. The annual service cost for each year of 2024 and 2025 was $740,000. The interest rate used to determine the projected benefit obligation is 12%. Both the actual and the expected return on plan assets are 10% for both years. Onyeocha funded the plan in the amount of $540,000 each January 1, beginning on January 1, 2024. What pension liability should Onyeocha report in its balance sheet for the year ended December 31, 2025? $321,400 Explanation PBO, January 1, 2024 Service cost Interest cost Gains/losses Retiree payments PBO, December 31, 2024 Service cost Interest cost (12% × $740,000) Gains/losses Retiree payments PBO, December 31, 2025 Net pension liability: $1,568,800 - $1,247,400 = $321,400 $0 Plan assets, Jan, 1, 2024 740,000 Funding 0 Return (10% × $540,000) 0 0 $ 740,000 Plan assets, December 31, 2024 $740,000 Funding 88,800 Return (10% × $1,134,000) 0 0 0 $540,000 54,000 $…On January 1, 2021, Gillock Climbing Academy instituted a defined benefit pension plan for its employees. The annual service cost for each year of 2021 and 2022 was $790,000. The interest rate used to determine the projected benefit obligation is 12%. Both the actual and the expected return on plan assets are 10% for both years. Gillock funded the plan in the amount of $590,000 each January 1, beginning on January 1, 2021. What pension liability should Gillock report in its balance sheet for the year ended December 31, 2022? Multiple Choice $501,500 $311.900 $370.900 $406,700Check my 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 $240,000 for 2021 and $330,000 for 2022. Year-end funding is $250,000 for 2021 and $260,000 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 thousands (1.e., 200,000 should be entered as 200).) December 31, 2021 December 31, 2022 1.…