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 19.9E
a.
To determine
The treatment of separate conceptual entries for the preceding information.
Giveninformation:
Fair value of plan assets at the beginning is $600,000.
Value of PBO at the beginning is $558,000.
Service cost is $125,800.
Settlement rate is 12%.
Expected rate on plan assets is 9%.
Actual loss on plan assets is $30,100.
Contribution for the year is $45,700.
Benefit paid for the year is $97,440.
Accumulated comprehensive income at the beginning is $42,000.
Prior service cost is $19,690.
Amortization of prior service cost is $7,000.
Actuarial gain is $8,000.
Average remaining service life of the employee base is 15 years.
b.
To determine
The value of total pension cost for the year.
Given information:
Fair value of plan assets at the beginning is $600,000.
Value of PBO at the beginning is $558,000.
Service cost is $125,800.
Settlement rate is 12%.
Expected rate on plan assets is 9%.
Actual loss on plan assets is $30,100.
Contribution for the year is $45,700.
Benefit paid for the year is $97,440.
Accumulated comprehensive income at the beginning is $42,000.
Prior service cost is $19,690.
Amortization of prior service cost is $7,000.
Actuarial gain is $8,000.
Average remaining service life of the employee base is 15 years.
c.
To determine
The value of closing balance of plan assets and PBO and indicate the funded status of the plan.
Given information:
Fair value of plan assets at the beginning is $600,000.
Value of PBO at the beginning is $558,000.
Service cost is $125,800.
Settlement rate is 12%.
Expected rate on plan assets is 9%.
Actual loss on plan assets is $30,100.
Contribution for the year is $45,700.
Benefit paid for the year is $97,440.
Accumulated comprehensive income at the beginning is $42,000.
Prior service cost is $19,690.
Amortization of prior service cost is $7,000.
Actuarial gain is $8,000.
Average remaining service life of the employee base is 15 years.
d.
To determine
To prepare: The
Given information:
Fair value of plan assets at the beginning is $600,000.
Value of PBO at the beginning is $558,000.
Service cost is $125,800.
Settlement rate is 12%.
Expected rate on plan assets is 9%.
Actual loss on plan assets is $30,100.
Contribution for the year is $45,700.
Benefit paid for the year is $97,440.
Accumulated comprehensive income at the beginning is $42,000.
Prior service cost is $19,690.
Amortization of prior service cost is $7,000.
Actuarial gain is $8,000.
Average remaining service life of the employee base is 15 years.
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Blossom Company provides the following information about its defined benefit pension plan for the year 2020.
Service cost
$ 90,600
Contribution to the plan
103,900
Prior service cost amortization
10,100
Actual and expected return on plan assets
63,100
Benefits paid
39,600
Plan assets at January 1, 2020
644,100
Projected benefit obligation at January 1, 2020
710,600
Accumulated OCI (PSC) at January 1, 2020
149,400
Interest/discount (settlement) rate
9
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Compute the pension expense for the year 2020.
Pension expense for 2020
$enter the Pension expense for 2020 in dollars
The following data relate to Ramesh Company's defined benefit pension plan:
($ in millions)
$690
69
55
118
13
20
90
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
Pension benefits paid (end of year)
Pension expense
Required:
Determine the amount 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 Assets
Beginning of the year
End of the year
Bridgeport Company provides the following information about its defined benefit pension plan for the year 2020.
Service cost
$ 91,000
Contribution to the plan
104,000
Prior service cost amortization
9,400
62,900
Actual and expected return on plan assets
Benefits paid
39,900
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Projected benefit obligation at January 1,
Accumulated OCI (PSC) at January 1, 2020
Interest/discount (settlement) rate
630,400
2010
701,800
153,000
10 %
Compute the pension expense for the year 2020.
Pension expense for 2020
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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