The following information relate to the defined benefit pension plan of Edward Corp. in relation to your audit of the company's postretirement benefit related accounts: Defined benefit obligation, January 1 P 3,000,000 Fair value of plan asset, January 12,800,000 Contribution to the plan during the year 210,000 Current service cost 160,000 Benefits paid during the year 300,000 Defined benefit obligation, December 31 3,482,000 Fair value of plan asset, December 31 2,984,000 Discount rate 6%

The following information relate to the defined benefit pension plan of Edward Corp. in relation to your audit of the company's postretirement benefit related accounts: Defined benefit obligation, January 1 P 3,000,000 Fair value of plan asset, January 12,800,000 Contribution to the plan during the year 210,000 Current service cost 160,000 Benefits paid during the year 300,000 Defined benefit obligation, December 31 3,482,000 Fair value of plan asset, December 31 2,984,000 Discount rate 6%

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 3MC

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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. $4,300
The following information relates to Schmidt Sausage Company's defined benefit pension plan during the current reporting year: Plan assets beginning of the year Expected return on plan assets Actual return on plan assets Cash contributions Amortization of net loss Retiree benefits ($ 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.
The following data relate to Voltaire Company's defined benefit pension plan: ($ in millions) 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 $600 60 48 100 10 11 72 Required: Determine the amount of pension plan assets at fair value on December 31.
d. The following information pertains to Lasting Inc.'s defined benefit plan. Description Projected benefit obligation Plan assets at fair value Accumulated OCI-Pension Gain/Loss Accumulated OCI-Prior Service Cost Accumulated benefit obligation On Lasting Inc's December 31 balance sheet, what amounts would the company report for assets, liabilities and stockholders' equity? Select one: Assets Liabilities Stockho $0 $13,000 Assets Liabilities $132,000 $145,000 Assets Liabilities Stock SO $13,000 Assets Liabilities $132,000 $145,000 Assets Liabilities Stockh $132,000 $128,000 Equity $70,000 $145,000 Cr. 132,000 DT. 18,000 Dr. 88,000 Cr. 128,000 Cr. $70,000 s Equity $0 TULEV SO $70,000
Analyzing Pension Gain/Loss Spears Company presents the following information related to its pension plan for the year, before recording pension expense. Projected Benefit Obligation, Jan. 1: $300,000 Cr Projected Benefit Obligation, Dec. 31: 325,000 Cr Accumulated OCI-Pension Gain/Loss, Jan. 1: 12,000 Cr Plan Assets, Jan. 1: 280,000 Dr Plan Assets, Dec.31: 295,000 Dr Actuarial loss on PBO, determined at Dec. 31: $4,200 Contributions to pension fund: 10,000 Benefits paid: 15,000 Average remaining service period of employees, current and next year: 20 years Expected rate of return: 10% Required: a, Determine the amortization of Accumulated OCI-Pension Gain/Loss for the current year, usign (1) corridor (minimum amortization) and (2) straight-line amortization based on average remaining service period. Note: Do not use negative signs with your answers. 1. Amortization under the corridor approach. 2. Amortization under the straight-line method. b. Determine the Accumulated OCI-Pension…
The following data relate to Ramesh Company’s defined benefit pension plan: ($ in millions) Plan assets at fair value, January 1 $ 630 Expected return on plan assets 63 Actual return on plan assets 50 Contributions to the pension fund (end of year) 106 Amortization of net loss 11 Pension benefits paid (end of year) 14 Pension expense 78 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.)
The following data relate to Ramesh Company's defined benefit pension plan: ($ in millions) Plan assets at fair value, January 1 $720 Expected return on plan assets 72 Actual return on plan assets 58 Contributions to the pension fund (end of year) 124 Amortization of net loss 14 Pension benefits paid (end of year) 17 Pension expense 96 Required: Determine the amount of pension plan assets at fair…
Rosaria Co. sponsors a defined benefit pension plan. For the current year ended December 31, thefollowing information relevant to the plan has been accumulated:Defined benefit obligation, 1/1 P11,250,000Fair value of plan assets, 1/1 10,500,000Current service cost 1,050,000Past service cost 2,200,000Actual return on plan assets 600,000Decrease in defined benefit obligation due tochanges in actuarial assumptions300,000Discount rate 8%Requirements:1. In the working papers computations, what balance of plan assets will be determined?2. In the working papers computations, what balance of benefit obligation will be determined?3. Calculate the amount that the entity would recognize in profit or loss for the year in accordancewith the revised PAS 19.4. Calculate the amount that the entity would recognize in other comprehensive income for theyear in accordance with the revised PAS 19.
The following information relates to the pension plan for the employees of Blossom Company: Accum. benefit obligation Projected benefit obligation Fair value of plan assets AOCI - net (gain) or loss Settlement rate (for year) Expected rate of return (for year) 1/1/25 $7940000 8465000 7625000 O $26250. O $17456. O $20238. O $14188. 0 12/31/25 $8360000 9158000 9620000 (1382000) 11% 8% 12/31/26 $11300000 12707000 10754000 (1550000) 11% 7% Blossom estimates that the average remaining service life is 16 years. Blossom's contribution was $1323000 in 2026 and benefits paid were $987000. The amount of AOCI (net gain) amortized in 2026 is
The following information relate to the defined benefit pension plan of Edward Corp. in relation to your audit of the company's postretirement benefit related accounts: Defined benefit obligation, January 1 3,000,000 Fair value of plan asset, January 1 2,800,000 Contribution to the plan during the year 210,000 Current service cost 160,000 Benefits paid during the year 300,000 Defined benefit obligation, December 31 3,482,000 Fair value of plan asset, December 31 2,984,000 Discount rate 6% What amount of defined benefit cost should be reported in the profit or loss?
The following are made available for the defined benefit pension plan of ABC Company as of Dec 31, 20X3: Fair Value of plan asset, Jan 1, 20x3 The actual return of plan assets Payment made to retirees Payment for pension benefits settled on active employees Contribution during the year Discount Rate What is the fair value of plan assets as of Dec 31, 20x3? 1,500,000 225,000 300,000 200,000 250,000 6%
The following information related to Company DDD's pension plan: Plan asset, January 1, 20x8 Defined benefit obligation, January 1, 20x8 Average remaining working life of employees at January 1, 20x8 Service cost for 20x8 Discount rate at January 1, 20x8 Expected return on plan asset at January 1, 20x8 Remeasurement loss arising in 20x8 Past service cost Vesting period for past service cost 2. P950,000 1,000,000 10 years 90,000 10% 100,000 15,000 30,000 2 years What amount of defined benefit cost should be recognized during 20x8?