On January 1, 2017, Blossom Company has the following defined benefit pension plan balances. Projected benefit...

On January 1, 2017, Blossom Company has the following defined benefit pension plan balances. Projected benefit obligation $4,517,000 Fair value of plan assets 4,250,000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2018, the company amends its pension agreement so that prior service costs of $504,000 are created. Other data related to the pension plan are as follows. 2017 2018 Service cost $148,000 $180,000 Prior service cost amortization 0 92,000 Contributions (funding) to the plan 238,000 286,000 Benefits paid 200,000 277,000 Actual return on plan assets 255,000 255,000 Expected rate of return on assets 6 % 8 %

Expert Solution

ekkarill92 answered 1 year ago

On January 1, 2017, Larkspur Company has the following defined benefit pension plan balances. Projected benefit...

On January 1, 2017, Larkspur Company has the following defined benefit pension plan balances. Projected benefit obligation $4,571,000 Fair value of plan assets 4,210,000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2018, the company amends its pension agreement so that prior service costs of $492,000 are created. Other data related to the pension plan are as follows. 2017 2018 Service cost $152,000 $179,000 Prior service cost amortization 0 89,000 Contributions (funding) to the plan...

On January 1, 2017, Grouper Company has the following defined benefit pension plan balances. Projected benefit...

On January 1, 2017, Grouper Company has the following defined benefit pension plan balances. Projected benefit obligation $4,464,000 Fair value of plan assets 4,190,000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2018, the company amends its pension agreement so that prior service costs of $504,000 are created. Other data related to the pension plan are as follows. 2017 2018 Service cost $148,000 $181,000 Prior service cost amortization 0 89,000 Contributions (funding) to the plan...

On January 1, 2020, Ivanhoe Company has the following defined benefit pension plan balances. Projected benefit...

On January 1, 2020, Ivanhoe Company has the following defined benefit pension plan balances. Projected benefit obligation $4,420,000 Fair value of plan assets 4,260,000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, the company amends its pension agreement so that prior service costs of $506,000 are created. Other data related to the pension plan are as follows. 2020 2021 Service cost $151,000 $176,000 Prior service cost amortization 0 92,000 Contributions (funding) to the plan...

On January 1, 2020, Sage Company has the following defined benefit pension plan balances. Projected benefit...

On January 1, 2020, Sage Company has the following defined benefit pension plan balances. Projected benefit obligation$4,571,000 Fair value of plan assets4,210,000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, the company amends its pension agreement so that prior service costs of $492,000 are created. Other data related to the pension plan are as follows. 2020 2021 Service cost $152,000 $179,000 Prior service cost amortization 0 89,000 Contributions (funding) to the plan 236,000 285,000...

On January 1, 2020, Tamarisk Company has the following defined benefit pension plan balances. Projected benefit...

On January 1, 2020, Tamarisk Company has the following defined benefit pension plan balances. Projected benefit obligation $4,460,000 Fair value of plan assets 4,150,000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, the company amends its pension agreement so that prior service costs of $503,000 are created. Other data related to the pension plan are as follows. 2020 2021 Service cost $150,000 $182,000 Prior service cost amortization 0 92,000 Contributions (funding) to the plan...

On January 1, 2020, Harrington Company has the following defined benefit pension plan balances. Projected benefit...

On January 1, 2020, Harrington Company has the following defined benefit pension plan balances. Projected benefit obligation $4,500,000 Fair value of plan assets 4,200,000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, the company amends its pension agreement so that prior service costs of $500,000 are created. Other data related to the pension plan are as follows. 2020 2021 Service cost $150,000 $180,000 Prior service cost amortization 0 90,000 Contributions (funding) to the plan...

Novak Co. has the following defined benefit pension plan balances on January 1, 2020. Projected benefit...

Novak Co. has the following defined benefit pension plan balances on January 1, 2020. Projected benefit obligation 4555000 Fair value of plan assets 4555000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, the company amends its pension agreement so that prior service costs of $599,000 are created. Other data related to the pension plan are: 2020 2021 Service cost 149,000 170,000 Prior service cost amortization 0 91,000 Contributions (funding) to the plan 201,000 183,000...

At year end, a company has a defined benefit pension plan with a projected benefit obligation...

At year end, a company has a defined benefit pension plan with a projected benefit obligation of $350,000; a net gain of $140,000 that was not previously recognized in net periodic pension cost; and prior service cost of $210,000 that was not previously recognized in net periodic pension cost. What amount should be reported in accumulated other comprehensive income related to the company's defined benefit pension plan at year end? A credit balance of $420,000. A debit balance of $420,000....

Madoff Company sponsors a defined-benefit pension plan for its employees. On January 1, 2017, the following...

Madoff Company sponsors a defined-benefit pension plan for its employees. On January 1, 2017, the following balances related to this plan. Plan assets (fair value) $650,000 Projected benefit obligation 675,000 Pension asset/liability 25,000 Cr. Prior service cost 120,000 OCI – Loss 72,000 As a result of the operation of the plan during 2017, the actuary provided the following additional data at Dec 31, 2017. Service cost for 2017 $32,000 Actual return on plan assets in 2017 35,000 Amortization of prior...

On January 1, 2019, a company's defined benefit pension plan had a projected benefit obligation (PBO)...

On January 1, 2019, a company's defined benefit pension plan had a projected benefit obligation (PBO) of $380,000. The fair value of its pension plan assets on January 1 was $350,000. During 2019, the company contributed $50,000 to the pension plan and paid pension benefits to retirees in the amount of $70,000. The settlement rate for the pension plan for 2019 was 12%. Service cost for the year was estimated to be $109,000. The expected rate of return on pension...

Question