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 2 years 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
600 employees. The company’s actuary provided the following
information about the plan.
January 1,
December 31,
2017
2017
2018
Projected benefit obligation
$2,800,000
$3,650,000
$4,195,000
Accumulated benefit obligation
1,900,000
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
calculation)
0
198,000
(24,000
)
Discount rate (current settlement rate)
9
%
8
%
Actual and expected asset...
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 $ 150,000 Benefits to retirees...
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
$ 150,000
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assets of $1,629,000. Panther recognized a net pension asset in its
balance sheet of $173,000 at the end of 2016. Due to the plans
overfunded position, Allison Costello, Panther's CFO, is interested
in finding out if it is possible to settle or curtail the plan.
Specifically, she is interested...
Turner Inc. provides a defined benefit pension plan to its employees. The company has 150 employees....
Turner Inc. provides a defined benefit pension plan to its
employees. The company has 150 employees. The remaining
amortization period at December 31, 2016, for prior service cost is
5 years. The average remaining service life of employees is 11
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AOCI—net actuarial (gain) loss was zero at December 31, 2016.
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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 $55,500.
2.
The company’s funding policy requires a contribution to the
pension trustee amounting to $144,729 for 2020.
3.
As of January 1, 2020, the company had a projected benefit
obligation...
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.
The company’s funding policy requires a contribution to the
pension trustee amounting to $155,550 for 2020.
3.
As of January 1, 2020, the company had a projected benefit
obligation...
Sarasota Company sponsors a defined benefit pension plan for its employees. The following data relate to...
Sarasota Company sponsors a defined benefit pension plan for its
employees. The following data relate to the operation of the plan
for the year 2017 in which no benefits were paid. 1. The actuarial
present value of future benefits earned by employees for services
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