Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Chapter 19, Problem 19.17BE
a.
To determine
The value of amortization expense at the end of the year.
Given information:
Opening balance of its unamortized gain is equal to $136,000.
Opening balance of the projected benefit obligation is $1,150,000.
Opening balance of the plan asset at fair value is $1,278,000.
Average remaining service life is 20 years.
b.
To determine
The value of amortization expense at the end of the year and journal entry of it.
Given information:
Opening balance of its unamortized gain is equal to $136,000.
Opening balance of the projected benefit obligation is $1,150,000.
Opening balance of the plan asset at fair value is $1,278,000.
Average remaining service life is 20 years.
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Students have asked these similar questions
Hijo Corp. is a publicly accountable entity that operates a defined benefit plan for its employees. Data relating to the pension plan is as follows:
Defined benefit obligation (DBO), December 31, 2019
$22,300,000
Plan assets, December 31, 2019
24,500,000
Current service costs (CSC), December 31, 2020
2,200,000
Benefits paid to retirees, December 31, 2020
1,000,000
Actual return on plan assets, December 31, 2020
800,000
DBO, December 31, 2020, per actuary
24,000,000
Yield on high-quality corporate bonds
4%
What is the total gain or loss that will flow to the other comprehensive income (OCI) part of the statement of comprehensive income for the year ended December 31, 2020?
Question 12 options:
a)
$572,000 loss
b)
$180,000 loss
c)
$212,000 gain
d)
$392,000 gain
Helv Industries sponsors a defined-benefit pension plan for its employees. As of January 1, 2020, the pension plan reported a Projected Benefit Obligation of $1,334,000 and fair value of Plan Assets of $996,000.
Helv also reports the following as of January 1, 2020:
Dr (Cr)
Net pension asset/liability
$ (338,000)
Accumulated other comprehensive income (AOCI)
Prior service cost
$ 100,000
Gains/Losses
$ -
Additionally, the following information is available for 2020:
Service cost
$ 306,000
Actual return of plan assets
$ 55,000
Amortization of prior service costs
$ 5,000
Benefits paid to retirees
$ 420,000
Contributions to the plan
$ 285,000
Discount…
The following information relates to the pension plan for the employees of Blossom Co.:
Accum, beneht obligation
Projected benefit obligation
Fair value of plan assets
AOCI - net (gain) or loss
Settlement rate (for year)
Expected rate of return (for year)
1/1/20
The corridor for 2021 is
$10240000
10765000
9925000
-0-
12/31/20
$10660000
11458000
11920000
(1612000)
9%
9%
12/31/21
$ 13600000
15007000
13054000
(1780000)
9%
8%
Blossom estimates that the average remaining service life is 16 years. Blossom's contribution was $1423000 in 2021 and benefits paid
were $1087000.
Chapter 19 Solutions
Intermediate Accounting
Ch. 19 - What is the allocation period used to expense...Ch. 19 - How do companies account for stock-based...Ch. 19 - Do companies with equity-based compensation plans...Ch. 19 - When accounting for employee stock options, will a...Ch. 19 - Prob. 19.5QCh. 19 - Prob. 19.6QCh. 19 - Prob. 19.7QCh. 19 - Prob. 19.8QCh. 19 - Prob. 19.9QCh. 19 - Prob. 19.10Q
Ch. 19 - Prob. 19.1MCCh. 19 - Prob. 19.2MCCh. 19 - Prob. 19.3MCCh. 19 - Prob. 19.4MCCh. 19 - Prob. 19.5MCCh. 19 - Prob. 19.6MCCh. 19 - Prob. 19.7MCCh. 19 - Prob. 19.8MCCh. 19 - Prob. 19.1BECh. 19 - Prob. 19.2BECh. 19 - Prob. 19.3BECh. 19 - Prob. 19.4BECh. 19 - Prob. 19.5BECh. 19 - Prob. 19.6BECh. 19 - Employee Stock Options, Liability-Classified...Ch. 19 - Prob. 19.8BECh. 19 - Prob. 19.9BECh. 19 - Prob. 19.10BECh. 19 - Prob. 19.11BECh. 19 - Prob. 19.12BECh. 19 - Prob. 19.13BECh. 19 - Prob. 19.14BECh. 19 - Prob. 19.15BECh. 19 - Prob. 19.16BECh. 19 - Prob. 19.17BECh. 19 - Prob. 19.18BECh. 19 - Prob. 19.19BECh. 19 - Prob. 19.20BECh. 19 - Prob. 19.21BECh. 19 - Prob. 19.22BECh. 19 - Prob. 19.23BECh. 19 - Prob. 19.24BECh. 19 - Prob. 19.25BECh. 19 - Prob. 19.26BECh. 19 - Prob. 19.27BECh. 19 - Prob. 19.28BECh. 19 - Prob. 19.1ECh. 19 - Prob. 19.2ECh. 19 - Employee Stock Options. Equity-Classified Awards....Ch. 19 - Prob. 19.4ECh. 19 - Prob. 19.5ECh. 19 - Prob. 19.6ECh. 19 - Prob. 19.7ECh. 19 - Prob. 19.8ECh. 19 - Prob. 19.9ECh. 19 - Prob. 19.10ECh. 19 - Prob. 19.11ECh. 19 - Prob. 19.12ECh. 19 - Prob. 19.13ECh. 19 - Prob. 19.14ECh. 19 - Prob. 19.15ECh. 19 - Prob. 19.16ECh. 19 - Prob. 19.1PCh. 19 - Prob. 19.2PCh. 19 - Prob. 19.3PCh. 19 - Prob. 19.4PCh. 19 - Prob. 19.5PCh. 19 - Prob. 19.6PCh. 19 - Prob. 19.7PCh. 19 - Prob. 19.8PCh. 19 - Prob. 19.9PCh. 19 - Prob. 19.10PCh. 19 - Prob. 19.11PCh. 19 - Prob. 19.12PCh. 19 - Prob. 1JCCh. 19 - Prob. 2FSCCh. 19 - Prob. 1SSCCh. 19 - Prob. 2SSCCh. 19 - Basis for Conclusions Case 1: Are Employee Stock...Ch. 19 - Prob. 2BCC
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