The controller of Linnaeus Company is reviewing pension information provided by his staff. The information indicates...

The controller of Linnaeus Company is reviewing pension information provided by his staff. The information indicates that current period service costs amount to $165,000. The projected benefit obligation at the beginning of the year was $1,100,000, and there were no changes in any assumptions used to arrive at that number, including the 9% discount rate. The accumulated benefit obligation was $675,000. Prior service costs amount to $480,000 and are to be amortized over 12 years.

Plan assets at the beginning of the year had a fair market value of $800,000 and were expected to provide a return of 10%. However, the actual return on plan assets for the year was $96,000. Net unamortized gains and losses from prior periods amount to a net gain of $210,000. Gains and losses are amortized over 20 years. Assume that the company chooses not to use the corridor approach for amortizing gains and losses but amortizes based upon the balance in the account as of the beginning of the year.

REQUIRED: Calculate the net pension expense for the period, showing all supporting computations.

Expert Solution

ekkarill92 answered 2 years ago

You're the controller at X Corp. Your accounting staff has just provided you with a list...

You're the controller at X Corp. Your accounting staff has just provided you with a list of variance calculations that you requested. Unfortunately, they forgot to calculate some variances that you wanted, and even worse, they neglected to provide you with the original budget data that you also requested. It's 8 PM, and everyone has gone home already. You have an actual income statement and have scrounged your desk to find some information on standards that the company used in...

The following information is provided to you from Elgin Outboard Motor Company and their pension administration...

The following information is provided to you from Elgin Outboard Motor Company and their pension administration firm: Service Cost . . . . . . . . . . . . . . . . . . $81,650 Contribution to plan . . . . . . . . . . . . . . 162,300 Prior Service Cost Amortization. . . . . . . . . 3,600 Actual and Expected Return on Assets . . . . ....

Complete the pension worksheet using the information provided below: Items Balance, Jan. 1, 2020 Annual Pension...

Complete the pension worksheet using the information provided below: Items Balance, Jan. 1, 2020 Annual Pension Expense Cash OCI - Prior Service Cost OCI- Gains/ Losses Pension Asset/ Liability Projected Benefit Obligation Plan Assets Service cost Interest cost Actual return Unexpected gain/loss Amortization of PSC Contributions Benefits Journal entry for 2020 2020 records of Lexxus Company provided the following data related to its noncontributory defined benefit pension plan. ACCOUNT BALANCES (‘000s) Jan. 1, 2020 Activity (‘000s) 2020 Projected Benefit Obligation...

3. At December 31, 2017, the following information was provided by the defined benefit pension plan...

3. At December 31, 2017, the following information was provided by the defined benefit pension plan administrator for Leonardo Corp.: Fair value of plan assets................................................ $5,000,000 Defined benefit obligation............................................ 6,200,000 The corporation uses IFRS. What is the net defined benefit liability/asset account that should be shown on Leonardo’s December 31, 2017 statement of financial position? 4. Night Owl Inc. reports a taxable and pre-tax accounting loss of $150,000 for 2017. The corporation's taxable and pre-tax accounting income and...

The controller of Neptune Corporation has provided you with the following information: Neptune Corporation Income Statement...

The controller of Neptune Corporation has provided you with the following information: Neptune Corporation Income Statement For the Year Ended December 31, 2018 Sales Revenue $77,500 Cost of Goods Sold 53,500 Gross Profit 24,000 Depreciation expense 16,500 Gain on Sale of Equipment 6,500 Net Income 14,000 Neptune Corporation Comparative Account Information Relating to Operations For the Year Ended December 31 Assets 2018 2017 Cash 29,500 30,000 Accounts Receivable 17,000 12,000 Capital Assets 138,500 123,500 Accumultaed Depreciation (89,000) (83,500) Total Assets...

An audit manager is reviewing a working paper of a staff member. Select whether the tickmark...

An audit manager is reviewing a working paper of a staff member. Select whether the tickmark legend is “sufficient and appropriate” or “Not Sufficient or Appropriate” for each of items a through d (4 answers are required). Explain if not sufficient, why that is the case. Legend a. @ -- Footed the column Sufficient b. ^ -- Could not perform procedure Not Sufficient c. + -- See a note to the financial statements Not sufficient d. % -- Taken from

As part of his contract at his new job, Jim is provided a company car and...

As part of his contract at his new job, Jim is provided a company car and gas card to go back and forth to work. He sometimes uses the car for out-of-town travel approximately once a month. Jim also uses the car and the gas card for his family vacations, dinner, etc. Explain the applicable tax law regarding employee compensation and the criteria for deducting expenses. Make at least two recommendations for ways that Jim can ensure that he is...

The following information is provided by Millenium Falcon Importers (MFI) regarding their defined benefit pension plan....

The following information is provided by Millenium Falcon Importers (MFI) regarding their defined benefit pension plan. Pension asset/liability (January 1) ($25,000) Projected benefit obligation, January 1, 2017 ($700,000) Settlement rate 10% Service cost $80,000 Contribution in 2017 $150,000 Actual and expected return on plan assets $10,000 Benefits paid to retirees $33,400 Prior service cost amortization for 2017 $60,000 What is the amount of pension expense that MFI should report for 2017?

When reviewing health records, a sample of size 280 indicates that 46% of Americans over the...

When reviewing health records, a sample of size 280 indicates that 46% of Americans over the age of 45 suffer from type II diabetes. Use the 95% confidence level to: 25. Estimate the margin of error. Thousandths 26. Estimate the true proportion. Thousandths 27. If you are conducting a new study using the 95% confidence level and no prior sample proportion information is known, estimate the sample size needed to be within a margin of error of ±3%

A recent National Science Foundation (NSF) survey indicates that more than 20% of the staff in...

A recent National Science Foundation (NSF) survey indicates that more than 20% of the staff in American research and development laboratories is foreign. Results of the study have been used for pushing legislation aimed at controlling the number of foreign workers in the United States. An organization of foreign-born scientists wants to prove that the NSF survey results do not reflect the true percentage of foreign workers in the U.S. labs. The organization collects a sample of 5,000 laboratory workers...

Question