Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Question
Chapter 19, Problem 19.8P
a.
To determine
The value of total pension cost for the year.
Given information:
Fair value of plan assets at the beginning is $1,006,902.
Value of PBO at the beginning is $1,043,692.
Service cost is $58,084.
Interest on PBOat the beginning is $135,680.
Expected rate on plan assets is 9%.
Actual return on plan assets is $84,500.
Contribution for the year is $92,612.
Benefit paid for the year is $48,672.
Amortization of prior service cost rate is 20%.
Actuarial loss is $18,252.
b.
To determine
To prepare: The T account for the accumulated other comprehensive income account.
Given information:
Fair value of plan assets at the beginning is $1,006,902.
Value of PBO at the beginning is $1,043,692.
Service cost is $58,084.
Interest on PBOat the beginning is $135,680.
Expected rate on plan assets is 9%.
Actual return on plan assets is $84,500.
Contribution for the year is $92,612.
Benefit paid for the year is $48,672.
Amortization of prior service cost rate is 20%.
Actuarial loss is $18,252.
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Students have asked these similar questions
The following information relates to Schmidt Sausage Company's defined benefit pension plan during the current reporting year:
Plan assets beginning of the year
Expected return on plan assets
Actual return on plan assets
Cash contributions
Amortization of net loss
Retiree benefits
($ in
millions)
Pension plan assets of the year
$ 580
58
49
78
9
10
Required:
Determine the amount of pension plan assets at fair value on December 31.
Note: Enter your answers in millions.
Sandhill Corp. sponsors a defined benefit pension plan for its
employees. On January 1, 2025, the following balances relate to this
plan.
Plan assets
Projected benefit obligation
Pension asset/lability
Accumulated OCI (PSC)
(a)
As a result of the operation of the plan during 2025, the following
additional data are provided by the actuary.
Service cost
Settlement rate, 9%
Actual return on plan assets
Amortization of prior service cost
Expected returson plan assets
Unexpected loss from change in projected benefit obligation
due to change in actuarial predictions
Contributions
Benentspaid retirees
items
Balance, Jan 1, 2025
Service cost
$496,400
610,800
interest cost
114400
Actual return
98,000 Dr.
Unexpected gain
Using the data above, compute pension expense for Sandhill. for the
year 2025 by preparing a pension worksheet. (Enter all amounts
as positive.)
$90.900
54,700
18.300
51.600
76.600
103.700
85,200
Annual Pension
Expense
C
Cath
SUPPORT
Sunshine company has a defined benefit pension plan. Using the data available related to
pension, calculate the amount of amortization of the net loss or gain that should be included
as a component of pension expense for the current year?
Average remaining service period of active employees
Net gain, January 1
PBO, January 1
Plan assets, January 1
12 years
$214,600
$1,630,000
S1,930,000
a. $21,600
b. $1,800
c. $51,600
d. $4,300
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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