Question
In: Accounting
Answer questions 1-4 from the following information. Beginning PBO: $800,000 Contributions: $64,000 Beginning Plan Assets: $700,000...
Answer questions 1-4 from the following information.
Beginning PBO: $800,000
Contributions: $64,000
Beginning Plan Assets: $700,000
Benefits Paid: $42,000
Amendment-January 1: $150,000
Actual Return: $9,000
Service Cost: $35,000
Amortization PSC: $11,000
Discount Rate: 4%
Expected Rate of Return: 5%
1. Compute interest costs.
2. Compute the expected return.
3. Compute the ending balance of the plan assets.
4. Compute the ending balance of the unrecognized net gain or loss in AOCI.
Solutions
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ekkarill92 answered 2 years agoRelated Solutions
Answer questions 1-4 from the following information. Beginning PBO: $600,000 Contributions: $47,000 Beginning Plan Assets: $550,000...
Answer questions 1-4 from the following
information.
Beginning PBO: $600,000
Contributions: $47,000
Beginning Plan Assets: $550,000
Benefits Paid: $33,000
Amendment-January 1: $170,000
Actual Return: $29,000
Service Cost: $52,000
Average Work Life: 17 years
Discount Rate: 3%
Expected Rate of Return: 6%
Compute the ending balance of the projected benefit obligation
(PBO).
Compute the ending balance of the prior service cost in
AOCI.
Compute the ending balance of the plan assets.
Compute the ending balance of the unrecognized net gain or...
Answer questions 5-8 from the following information. Beginning PBO: $3,800,00 Contributions: $290,000 Beginning Plan Assets: $3,100,000...
Answer questions 5-8 from the following information.
Beginning PBO: $3,800,00
Contributions: $290,000
Beginning Plan Assets: $3,100,000
Benefits Paid: $410,000
Amendment-January 1: $450,000
Actual Return: $170,000
Service Cost: $180,000
Amortization PSC: $?
Discount Rate: 6%
Expected Rate of Return: 8%
Beginning PSC: $540,000
Actuarial Loss: $4,400
Beginning Net Gain: $470,000
Average Work Years: 18
5. Compute the ending balance of the projected benefit
obligation (PBO).
6. Compute the ending balance of the plan assets.
7. Compute the ending balance of the...
A company with a DB pension plan had a beginning PBO of $280,000, beginning Plan Assets...
A company with a DB pension plan had a beginning PBO of
$280,000, beginning Plan Assets of $252,000, and beginning Net Gain
-- AOCI of $30,240. The average remaining service period of active
employees is 10 years. Additional information for the current year:
• Service cost of $37,800, plan contributions of $34,020, retiree
benefits paid of $40,824 • Expected return of 8%, Actual return of
6% • Interest rate of 7.5%.
21.
The corridor is ____.
22.
Amortization of the...
Use the following information to answer the next 3 questions. ABC has beginning-of-year balances of: PBO,...
Use the following information to answer
the next 3 questions.
ABC has beginning-of-year balances of:
PBO, $330,000; Plan Assets, $310,000; and Net Loss – AOCI, $55,000.
During the year, ABC recorded a loss on Plan Assets of $8,820 and a
gain on the PBO of $11,000. Net income for the year is $77,000.
Assume no amortization of the net gain/loss in AOCI is needed.
14.
Other comprehensive income is
____.
15.
Comprehensive income is ____.
16.
The end-of-year balance in...
Acturary and trustee reports indicate the following changes in the PBO and plan assets of White...
Acturary and trustee reports indicate the following changes in
the PBO and plan assets of White Inc. during 2016:
Prior service cost at January 1, 2016 from plan amendment at
the beginning of 2013 [Amortization: $4,000 per year]
$68,000
Net Gain - AOCI at January 1, 2016
$40,000
Average remaining service life of the active employee
group
15 years
Actuary's discount rate
5%
Gain - from changes in actuarial assumptions
$5,000
2016 Pension Expense
$33,500
PBO
Plan Assets
Beginning of...
Actuary and trustee reports indicate the following changes in the PBO and plan assets of White...
Actuary and trustee reports indicate the following changes in
the PBO and plan assets of White Inc. during 2016:
Prior service cost at January 1, 206 from plan amendment at the
beginning of 2013 [Amortization: $4,000 per year]
$68,000
Net Gain - AOCI at January 1, 2016
$40,000
Average remaining service life of the active employee
group
15 years
Actuary's discount rate
5%
Gain - from changes in actuarial assumptions
$5,000
2016 Pension Expense
$33,500
PBO
Plan Assets
Beginning of...
Actuary and trustee reports indicate the following changes in the PBO and plan assets of White...
Actuary and trustee reports indicate the following changes in
the PBO and plan assets of White Inc. during 2017:
Prior service cost at January
1, 2017 from plan amendment at the beginning of 2014 [Amortization:
$4,000 per year]
$68,000
Net Gain - AOCI at January 1,
2017
$40,000
Average remaining service life
of the active employee group
15 years
Actuary's discount rate
5%
Gain - from changes in
actuarial assumptions
$5,000
2017 Pension Expense
$33,500
PBO
Plan Assets
Beginning of...
Actuary and trustee reports indicate the following changes in the PBO and plan assets of White...
Actuary and trustee reports indicate the following changes in
the PBO and plan assets of White Inc. during 2016:
Prior service cost at January 1, 2016 from plan amendment at
the beginning of 2013 [Amortization: $4,000 per year]
$68,000
Net Gain - AOCI at January 1, 2016
$40,000
Average remaining service life of the active employee
group
15 years
Actuary's discount rate
5%
Gain - from changes in actuarial assumptions
$5,000
2016 Pension Expense
$33,500
PBO
Plan Assets
Beginning of...
Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts...
Actuary and trustee reports indicate the following changes in
the PBO and plan assets of Douglas-Roberts Industries during
2018:
Prior service cost at Jan. 1,
2018, from plan amendment at the
beginning of 2015 (amortization: $4 million per year)
$
12
million
Net loss—AOCI at Jan.1, 2018
(previous losses exceeded previous gains)
$
98
million
Average remaining service life
of the active employee group
10
years
Actuary's discount rate
3
%
($ in millions)
Plan
PBO
Assets
Beginning of 2018...
Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts...
Actuary and trustee reports indicate the following changes in
the PBO and plan assets of Douglas-Roberts Industries during 2018:
Prior service cost at Jan. 1, 2018, from plan amendment at the
beginning of 2015 (amortization: $5 million per year) $ 25 million
Net loss—AOCI at Jan.1, 2018 (previous losses exceeded previous
gains) $ 112 million Average remaining service life of the active
employee group 10 years Actuary's discount rate 5 % ($ in millions)
Plan PBO Assets Beginning of 2018...
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