The following data pertains to a defined benefit (DB) pension plan: 25,000 10% defined benefit obligation, December 31, 2015 long-term interest rate on corporate bonds past service cost, December 31, 2016, benefits and liability reduced actuarial revaluation, December 31, 2016, change in mortality assumptions, increased liability actual return on plan assets - 2016 fair value of plan assets, December 31, 2015 funding payment at December 31, 2016 benefits paid to retirees 2016 current service cost - 2016 (1,200) 600 2,100 16,000 4,000 2,000 1,900 Required: 1. Calculate the net defined benefit pension asset/liability at December 31, 2015. 2. For December 31, 2016, calculate the defined benefit obligation, fair value of plan assets and the net defined benefit pension asset or liability. 3. Calculate the three pension accounting elements and journal entries for service cost, net interest and revaluations for 2016.

The following data pertains to a defined benefit (DB) pension plan: 25,000 10% defined benefit obligation, December 31, 2015 long-term interest rate on corporate bonds past service cost, December 31, 2016, benefits and liability reduced actuarial revaluation, December 31, 2016, change in mortality assumptions, increased liability actual return on plan assets - 2016 fair value of plan assets, December 31, 2015 funding payment at December 31, 2016 benefits paid to retirees 2016 current service cost - 2016 (1,200) 600 2,100 16,000 4,000 2,000 1,900 Required: 1. Calculate the net defined benefit pension asset/liability at December 31, 2015. 2. For December 31, 2016, calculate the defined benefit obligation, fair value of plan assets and the net defined benefit pension asset or liability. 3. Calculate the three pension accounting elements and journal entries for service cost, net interest and revaluations for 2016.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter12: Liabilities: Off-balance-sheet Financing, Retirement Benefits, And Income Taxes

Section: Chapter Questions

Problem 21E

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Assume that actual returns and expected returns to plan assets in a defined benefit pension plan are +$10 and +$12, respectively. What is the effect in the current period on pension expense? Select One: a.Pension expense is increased by $10 b.Pension expense is reduced by $10 c.Pension expense is reduced by $12 d.None of the listed answers
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Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2024 (the end of Beale's fiscal year), the following pension-related data were available: Projected Benefit obligation Balance, January 1, 2024 Service cost Interest cost, discount rate, 5% Gain due to changes in actuarial assumptions in 2024 Pension benefits paid Balance, December 31, 2024 Plan Assets Balance, January 1, 2024 Actual return on plan assets (Expected return on plan assets, $43) Cash contributions Pension benefits paid Balance, December 31, 2024 January 1, 2024, balances: Pension asset Prior service cost-AOCI (amortization $6 per year) Net gain-AOCI (any amortization over 10 years) ($ in millions) Balance, January 1, 2024 Service cost Interest cost, 5% Expected return on assets Adjust for: Loss on assets Amortization of: Prior service cost Net gain Gain on PBO Cash funding Retiree benefits Balance, December 31, 2024 Required: Prepare a pension spreadsheet to show the relationship among…