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Question: Katie Day Company adopts acceptable accounting for its defined benefit pension plan on January 1,......
Question: Katie Day Company adopts acceptable accounting for its defined benefit pension plan on January 1,... Katie Day Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2011, with the following beginning balances: plan assets $200,000, projected benefit obligation $200,000. Other data relating to 3 years’ operation of the plan are as follows. 2011 2012 2013 $ 16,000 $19,000 $ 26,000 a) Annual service cost b) Settlement rate and expected rate of return c) Actual return on plan assets 17,000 21,900 24,000 d) Annual contribution e) Benefits paid 10% | 10% | 10% 16,000 40,000 48,000 14,00016,40021,000 Unrecognized prior service cost (plan amended 1/1/12) g) Amortization of unrecognized prior service cost h) Change in actuarial assum est.12/31/2013 proj. benefit of: 160,000 54,40041,600 520,000 Compute the amount of gain or loss to be amortized, if any during the year 2014. Assume that average expected years of service is 8 years.
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Expert Solution
The amount of gain or loss to be amortized, if any during the year 2014 = $421.25
refer below
ekkarill92 answered 2 years agoRelated Solutions
Blue Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2019, with...
Blue Company adopts acceptable accounting for its defined
benefit pension plan on January 1, 2019, with the following
beginning balances: plan assets $203,100; projected benefit
obligation $252,000. Other data relating to 3 years’ operation of
the plan are as follows.
2019
2020
2021
Annual service cost
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$26,200
Settlement rate and expected rate
of return
10
%
10
%
10
%
Actual return on plan assets
18,200
22,280
23,600
Annual funding (contributions)
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16,400...
Problem 20-2 Crane Company adopts acceptable accounting for its defined benefit pension plan on January 1,...
Problem 20-2
Crane Company adopts acceptable accounting for its defined
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obligation $245,000. Other data relating to 3 years’ operation of
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2016
2017
2018
Annual service cost
$15,800
$19,400
$26,100
Settlement rate and expected rate
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10
%
10
%
10
%
Actual return on plan assets
18,000
22,150
24,000
Annual funding (contributions)
15,800
40,000
47,500
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Madoff Company sponsors a defined-benefit pension plan for its
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Projected benefit obligation 675,000
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Prior service cost 120,000
OCI – Loss 72,000
As a result of the operation of the plan during 2017, the actuary
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Actual return on plan assets in 2017 35,000
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The following data relates to the plan for the company’s current
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$’s in millions Actual Return...
The Royal Corp has a defined benefit pension plan. As of January 1, 2019, the company...
The Royal Corp has a defined benefit pension plan. As of January
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The following data relates to the plan for the company’s current
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$’s in millions Actual Return...
Pension Problem ABC Company had the following: The company adopts a pension plan on January 1,...
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ABC Company had the following:
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The service cost for each year is 2010 $400,000; 2011 $420,000;
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The projected benefit obligation at the beginning of each year
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The discount rate is 4%.
The expected long-term rate of return on plan assets is 5%
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The...
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Projected benefit obligation
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Dr.
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Teal Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the...
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Plan assets
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Projected benefit obligation
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Pension asset/liability
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Dr.
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Service cost
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Actual return on plan assets
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Projected benefit obligation
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Accumulated OCI (PSC)
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