Question
In: Accounting
Hana Company’s defined-benefit pension plan covers 180 employees. In its negotiations with the employees, Zarle Company...
Hana Company’s defined-benefit pension plan covers 180 employees. In its negotiations with the employees, Zarle Company amends its pension plan on January 1, 2014, and grants SR 94,000 of prior service costs to its employees. The employees are grouped according to expected years of retirement, as shown below.
|
Group |
Number of Employees |
Expected Retirement on December 31, |
|
I |
30 |
2014 |
|
II |
50 |
2015 |
|
III |
60 |
2016 |
|
IV |
40 |
2017 |
|
Total |
180 |
1. Compute per year service years and the total service years.
2. Compute annual prior service cost amortization.
Please answer via word document so that I can cope it
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Cullumber Company sponsors a defined benefit pension plan for its 600 employees. The company’s actuary provided...
Cullumber Company sponsors a defined benefit pension plan for
its 600 employees. The company’s actuary provided the following
information about the plan.
January 1,
December 31,
2020
2020
2021
Projected benefit obligation
$2,780,000
$3,622,200
$4,163,976
Accumulated benefit obligation
1,900,000
2,441,000
2,904,000
Plan assets (fair value and market-related asset value)
1,700,000
2,896,000
3,753,000
Accumulated net (gain) or loss (for purposes of the corridor
calculation)
0
196,000
(24,000
)
Discount rate (current settlement rate)
9
%
8
%
Actual and expected asset...
Keeton Company sponsors a defined benefit pension plan for its 600 employees. The company’s actuary provided...
Keeton Company sponsors a defined benefit pension plan for its
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January 1,
December 31,
2017
2017
2018
Projected benefit obligation
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Accumulated benefit obligation
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2,430,000
2,900,000
Plan assets (fair value and market-related asset value)
1,700,000
2,900,000
3,790,000
Accumulated net (gain) or loss (for purposes of the corridor
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0
198,000
(24,000
)
Discount rate (current settlement rate)
9
%
8
%
Actual and expected asset...
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Thorp Inc. maintains a defined benefit pension plan for its employees. Pension plan balances as at...
Thorp Inc. maintains a defined benefit
pension plan for its employees. Pension plan balances as at January
1, 2020 include:
Projected Benefit Obligation (PBO), January 1, 2020
$ 600,000
Plan assets at market-related value, January 1,
2020
$ 550,000
Prior service cost (PSC- OCI)1
$ 150,000
Average remaining service period
15 years
Service cost
$ 90,000
Expected returns on plan assets
8%
Actual returns earned on plan assets
$40,000
Actuarial interest rate
4%
Contributions paid
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Carla Company sponsors a defined benefit pension plan for its
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1.
The actuarial present value of future benefits earned by
employees for services rendered in 2020 amounted to $55,500.
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Carla Company sponsors a defined benefit pension plan for its employees. The following data relate to...
Carla Company sponsors a defined benefit pension plan for its
employees. The following data relate to the operation of the plan
for the year 2020 in which no benefits were paid.
1.
The actuarial present value of future benefits earned by
employees for services rendered in 2020 amounted to $56,200.
2.
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3.
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