Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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Chapter 19, Problem 4MC
To determine
Compute the amount of pension expense of Company S for the year ended December 31, 2020.
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BANTRY Company reported the following in its 2021 annual report with respect to retirement
benefit obligations (i.e., Pension Obligations)
Interest Revenue on Plan Assets
Service Cost
Interest on Defined Benefit Obligations
QUESTION ONE: MCQ 3
What is BANTRY Company's Pension Expense for 2021?
A. $100,000
B. $700,000
C. $300,000
D. $500,000
E. None of these answers
$600,000
$300,000
$400,000
THE FOLLOWING INFORMATION RELATES TO MCQ 4
QUESTION ONE: MCQ 4
Suppose KINSALE Company had Pension Plan Assets on 1 January 2021 of $4,000,000 and
Pension Plan Assets on 31 December 2021 of $6,000,000.
Assume that the 2021 Contributions to the Pension Fund were $3,400,000 while the Benefits
Paid from the Pension Fund were $4,600,000.
What was KINSALE Company's return on Plan Assets for 2021?
A. $2,700,000
B. $2,900,000
C. $3,100,000
D. $3,200,000
E. None of these answers
The actuary for the pension plan of Blossom Inc. calculated the following net gains and losses.
Incurred during the Year
(Gain) or Loss
2025
$302,850
2026
480,400
2027
(211,000)
2028
(289,700)
Other information about the company's pension obligation and plan assets is as follows.
Projected Benefit
Plan Assets
As of January 1,
Obligation
(market-related asset value)
2025
$4,004,500
$2,376,000
2026
4,531,500
2,190,900
2027
5,018,100
2,581,800
2028
4,241,640
3,061,000
Blossom Inc. has a stable labor force of 400 employees who are expected to receive benefits under the plan. The total service-years for
all participating employees is 6,400. The beginning balance of accumulated OCI (G/L) is zero on January 1, 2025. The market-related
value and the fair value of plan assets are the same for the 4-year period. Use the average remaining service life per employee as the
basis for amortization.
Prepare a schedule which reflects the minimum amount of accumulated OCI (G/L) amortized as a component…
The actuary for the pension plan of Sheridan Inc, calculated the following net gains and losses.
Incurred during the Year
2020
2021
2022
2023
As of January 1,
2020
2021
Other information about the company's pension obligation and plan assets is as follows.
2022
2023
2020
2021
2022
2023
(Gain) or Loss
$301,200
$
477,600
Projected Benefit
Obligation
$
(211,500)
(290,200)
$
$
Year Minimum Amortization of (Gain) Loss
Sheridan Inc. has a stable labor force of 400 employees who are expected to receive benefits under the plan. The total service-years
for all participating employees is 4,800. The beginning balance of accumulated OCI (G/L) is zero on January 1, 2020. The market-
related value and the fair value of plan assets are the same for the 4-year period. Use the average remaining service life per employee
as the basis for amortization.
$3,996,200
Compute the minimum amount of accumulated OCI (G/L) amortized as a component of net periodic pension expense for each of the
years 2020, 2021,…
Chapter 19 Solutions
Intermediate Accounting: Reporting And Analysis
Ch. 19 - Prob. 1GICh. 19 - Prob. 2GICh. 19 - Prob. 3GICh. 19 - Prob. 4GICh. 19 - Prob. 5GICh. 19 - Prob. 6GICh. 19 - Prob. 7GICh. 19 - Prob. 8GICh. 19 - Prob. 9GICh. 19 - Prob. 10GI
Ch. 19 - Prob. 11GICh. 19 - Prob. 12GICh. 19 - Prob. 13GICh. 19 - Prob. 14GICh. 19 - Prob. 15GICh. 19 - Prob. 16GICh. 19 - Prob. 17GICh. 19 - Prob. 18GICh. 19 - Prob. 19GICh. 19 - Prob. 20GICh. 19 - Prob. 21GICh. 19 - Prob. 22GICh. 19 - Prob. 23GICh. 19 - The actuarial present value of all the benefits...Ch. 19 - Prob. 2MCCh. 19 - Prob. 3MCCh. 19 - Prob. 4MCCh. 19 - Prob. 5MCCh. 19 - Prob. 6MCCh. 19 - Which of the following is not a component of...Ch. 19 - Prob. 8MCCh. 19 - Prob. 9MCCh. 19 - Prob. 10MCCh. 19 - Prob. 1RECh. 19 - Prob. 2RECh. 19 - Pinecone Company has plan assets of 500,000 at the...Ch. 19 - Prob. 4RECh. 19 - Prob. 5RECh. 19 - Prob. 6RECh. 19 - Prob. 7RECh. 19 - Prob. 8RECh. 19 - Given the following information for Tyler Companys...Ch. 19 - At the beginning of Year 1, Cactus Company has...Ch. 19 - Prob. 11RECh. 19 - Prob. 1ECh. 19 - Prob. 2ECh. 19 - Prob. 3ECh. 19 - Prob. 4ECh. 19 - Prob. 5ECh. 19 - Prob. 6ECh. 19 - Prob. 7ECh. 19 - Prob. 8ECh. 19 - Prob. 9ECh. 19 - Prob. 10ECh. 19 - Prob. 11ECh. 19 - Prob. 12ECh. 19 - Prob. 13ECh. 19 - Refer to the information provided in E19-13....Ch. 19 - Prob. 15ECh. 19 - Prob. 16ECh. 19 - Prob. 1PCh. 19 - Prob. 2PCh. 19 - Prob. 3PCh. 19 - Prob. 4PCh. 19 - Prob. 5PCh. 19 - Prob. 6PCh. 19 - Prob. 7PCh. 19 - Prob. 8PCh. 19 - Prob. 9PCh. 19 - Prob. 10PCh. 19 - Prob. 11PCh. 19 - Prob. 12PCh. 19 - Prob. 1CCh. 19 - Prob. 2CCh. 19 - Prob. 3CCh. 19 - Prob. 4CCh. 19 - Prob. 5CCh. 19 - Prob. 6CCh. 19 - Prob. 7CCh. 19 - Prob. 9C
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- The actuary for the pension plan of Sheridan Inc. calculated the following net gains and losses. Incurred during the Year (Gain) or Loss 2025 2026 $302,750 476,000 2027 (212,000) 2028 (289,000) Other information about the company's pension obligation and plan assets is as follows. Projected Benefit Plan Assets As of January 1, Obligation (market-related asset value) 2025 $3,981,400 $2,397,500 2026 4,538,600 2,194,400 2027 4,962,600 2,605,000 2028 4,248,350 3,065,800 Sheridan Inc. has a stable labor force of 400 employees who are expected to receive benefits under the plan. The total service-years for all participating employees is 5,200. The beginning balance of accumulated OCI (G/L) is zero on January 1, 2025. The market-related value and the fair value of plan assets are the same for the 4-year period. Use the average remaining service life per employee as the basis for amortization. Prepare a schedule which reflects the minimum amount of accumulated OCI (G/L) amortized as a…arrow_forwardThe actuary for the pension plan of Oriole Inc. calculated the following net gains and losses. Incurred during the Year (Gain) or Loss 2020 $302,200 476,600 (210,400) (291,300) Other information about the company's pension obligation and plan assets is as follows. As of January 1, 2020 2021 2022 2023 2021 2022 2023 2021 2022 Projected Benefit Obligation 2023 $4,029,300 4,515,400 5,019,900 4,255,600 Oriole Inc. has a stable labor force of 400 employees who are expected to receive benefits under the plan. The total service-years for all participating employees is 4,400. The beginning balance of accumulated OCI (G/L) is zero on January 1, 2020. The market-related value and the fair value of plan assets are the same for the 4-year period. Use the average remaining service life per employee as the basis for amortization. Plan Assets (market-related asset value) Compute the minimum amount of accumulated OCI (G/L) amortized as a component of net periodic pension expense for each of the years…arrow_forwardThe actuary for the pension plan of Carla Vista Company calculated the following net gains and losses: Incurred during the Year (Gain) or Loss 2025 $(634,000) 2026 250,000 2027 1,020,000 2028 393,000 Other information about the company's pension obligation and plan assets is as follows: Projected Benefit As of January 1 Obligation Plan Assets (market-related asset value) 2025 $3,957,000 $3,563,000 2026 4,608,000 3,543,000 2027 4,690,000 3,729,000 2028 5,257,000 4,386,000 Carla Vista Company has a stable labor force of 250 employees who are expected to receive benefits under the plan. The total service- years for all participating employees are 2,750. The beginning balance of Accumulated OCI (G/L) is zero on January 1, 2025. The market-related value and the fair value of plan assets are the same for the 4-year period. Use the average remaining service life per employee as the basis for amortization. Compute the minimum amount of Accumulated OCI (G/L) amortized as a component of net…arrow_forward
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