Question
In: Accounting
Abbott Laboratories' has a defined benefit retirement plan. The company's 2016 annual report includes the following...
Abbott Laboratories' has a defined benefit retirement plan. The company's 2016 annual report includes the following excerpt about these plans (in millions): Projected benefit obligations, January 1, 2016 $7,820 Service cost — benefits earned during the year 263 Interest cost on projected benefit obligations 288 Actuarial losses (gains) 645 Benefits paid (242 ) Other, including foreign currency translation (257 ) Projected benefit obligations, December 31, 2016 $8,517 Plans' assets at fair value, January 1, 2016 $6,772 Actual return on plan assets 631 Company contributions 582 Benefits paid (242 ) Other, including foreign currency translation (201 ) Plan assets at fair value, December 31, 2016 $7,542 What is the funded status of this plan? Select one: A. The plan is underfunded by $975 million B. The plan is overfunded by $975 million C. The plan is underfunded by $8,517 million D. The plan is overfunded by $7,542 million E. None of the above
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2018, Abbott and...
Abbott and Abbott has a noncontributory, defined benefit pension
plan. At December 31, 2018, Abbott and Abbott received the
following information:
Projected Benefit
Obligation
($
in millions)
Balance, January 1
$
160
Service cost
24
Interest cost
16
Benefits paid
(11
)
Balance, December 31
$
189
Plan Assets
Balance, January 1
$
80
Actual return on plan
assets
11
Contributions 2018
24
Benefits paid
(11
)
Balance, December 31
$
104
The expected long-term rate of return on plan...
Clark Industries has a defined benefit pension plan that specifies annual retirement benefits equal to:
Clark Industries has a defined
benefit pension plan that specifies annual retirement benefits
equal to:
1.7%
× Service years × Final year’s salary
Stanley Mills was hired by Clark at the beginning of 1997. Mills
is expected to retire at the end of 2041 after 45 years of service.
His retirement is expected to span 15 years. At the end of 2016, 20
years after being hired, his salary is $85,000. The company’s
actuary projects Mills’s salary to be $320,000...
Clark Industries has a defined benefit pension plan that specifies annual retirement benefits equal to:
Clark Industries has a defined
benefit pension plan that specifies annual retirement benefits
equal to:
1.5%
× Service years × Final year’s salary
Stanley Mills was hired by Clark at the beginning of 1997. Mills
is expected to retire at the end of 2041 after 45 years of service.
His retirement is expected to span 15 years. At the end of 2016, 20
years after being hired, his salary is $90,000. The company’s
actuary projects Mills’s salary to be $370,000...
Clark Industries has a defined benefit pension plan that specifies annual, year-end retirement benefits equal to:...
Clark Industries has a defined benefit pension plan that
specifies annual, year-end retirement benefits equal to: 1.3% ×
Service years × Final year’s salary Stanley Mills was hired by
Clark at the beginning of 2002. Mills is expected to retire at the
end of 2046 after 45 years of service. His retirement is expected
to span 15 years. At the end of 2021, 20 years after being hired,
his salary is $88,000. The company’s actuary projects Mills’s
salary to be...
Clark Industries has a defined benefit pension plan that specifies annual, year-end retirement benefits equal to:...
Clark Industries has a defined benefit pension plan that
specifies annual, year-end retirement benefits equal to:
1.2% × Service years × Final year’s salary
Stanley Mills was hired by Clark at the beginning of 2002. Mills is
expected to retire at the end of 2046 after 45 years of service.
His retirement is expected to span 15 years. At the end of 2021, 20
years after being hired, his salary is $97,000. The company’s
actuary projects Mills’s salary to be...
The accountant for Sunland Corporation has developed the following information for the company's defined-benefit pension plan...
The accountant for Sunland Corporation has developed the
following information for the company's defined-benefit pension
plan for 2019:
Service cost
$540,000
Actual return on plan assets
266,000
Annual contribution to the plan
936,000
Amortization of prior service cost
126,600
Benefits paid to retirees
68,000
Settlement rate
10%
Expected rate of return on plan assets
8%
The accumulated benefit obligation at December 31, 2019, amounted
to $3,330,000.
Using the above information for Sunland Corporation, complete
the pension work sheet for 2019...
Jackson Company has the following information for the company's defined-benefit pension plan for the year ended...
Jackson Company has the following information for the company's
defined-benefit pension plan for the year ended December 31,
2021:
January
1, 2021 December 31, 2021
Projected
benefit
obligation
$5,000,000
$5,510,000
Fair value of
plan
assets
2,500,000
3,200,000
Accumulated OCI
(PSC)
1,080,000
600,000
Service cost for 2021 is $360,000 and amortization of prior service
cost is $480,000. The company's funding of the plan in 2021
amounted to $1,050,000. Benefit payments for the year totaled
$600,000, The expected...
Retirement Plans A defined benefit plan, most often known as a pension, is a retirement account...
Retirement Plans
A defined benefit plan, most often known as a
pension, is a retirement account for which your employer ponies up
all the money and promises you a set payout when you retire.
A defined contribution plan, like a 401(k) or
403(b), requires you to put in your own money.
Annuity: An annuity is a contract between you
and an insurance company in which you make a lump sum payment or
series of payments and in return obtain regular...
Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.2% × service years...
Sachs Brands's defined benefit pension plan specifies annual
retirement benefits equal to 1.2% × service years × final year's
salary, payable at the end of each year. Angela Davenport was hired
by Sachs at the beginning of 2007 and is expected to retire at the
end of 2041 after 35 years' service. Her retirement is expected to
span 18 years. Davenport's salary is $90,000 at the end of 2021 and
the company's actuary projects her salary to be $280,000 at...
Sachs Brands' defined benefit pension plan specifies annual retirement benefits equal to: 1.2% × service years...
Sachs Brands' defined benefit pension plan specifies annual
retirement benefits equal to: 1.2% × service years × final year's
salary, payable at the end of each year. Angela Davenport was hired
by Sachs at the beginning of 2004 and is expected to retire at the
end of 2038 after 35 years' service. Her retirement is expected to
span 18 years. Davenport's salary is $80,000 at the end of 2018 and
the company's actuary projects her salary to be $230,000 at...
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