Actuary and trustee reports indicate the following changes in
the PBO and plan assets of Douglas-Roberts Industries during
2018:
| Prior service cost at Jan. 1,
2018, from plan amendment at the beginning of 2015 (amortization: $4 million per year) |
$ | 12 | million |
| Net loss—AOCI at Jan.1, 2018 (previous losses exceeded previous gains) | $ | 98 | million |
| Average remaining service life of the active employee group | 10 | years | |
| Actuary's discount rate | 3 | % | |
| ($ in millions) | Plan | |||||||||
| PBO | Assets | |||||||||
| Beginning of 2018 | $ | 660 | Beginning of 2018 | $ | 460 | |||||
| Service cost | 56 | Return on plan assets, | ||||||||
| 4% (6% expected) | 18.4 | |||||||||
| Interest cost, 3% | 19.8 | |||||||||
| Loss (gain) on PBO | (12 | ) | Cash contributions | 99 | ||||||
| Less: Retiree benefits | (33 | ) | Less: Retiree benefits | (33 | ) | |||||
| End of 2018 | $ | 690.8 | End of 2018 | $ | 544.4 | |||||
|
Required: |
||||||||||
In: Accounting
Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts Industries during 2018: Prior service cost at Jan. 1, 2018, from plan amendment at the beginning of 2015 (amortization: $5 million per year) $ 25 million Net loss—AOCI at Jan.1, 2018 (previous losses exceeded previous gains) $ 112 million Average remaining service life of the active employee group 10 years Actuary's discount rate 5 % ($ in millions) Plan PBO Assets Beginning of 2018 $ 800 Beginning of 2018 $ 600 Service cost 70 Return on plan assets, 6% (8% expected) 36.0 Interest cost, 5% 40.0 Loss (gain) on PBO (19 ) Cash contributions 106 Less: Retiree benefits (40 ) Less: Retiree benefits (40 ) End of 2018 $ 851.0 End of 2018 $ 702.0 Required: 1-a. Determine Douglas-Roberts' pension expense for 2018. 1.b, 2. to 4. Prepare the appropriate journal entries to record the pension expense, to record any 2018 gains and losses, to record the cash contribution to plan assets and to record retiree benefits.
In: Accounting
On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2019. Expenditures on the project were as follows: January 1, 2018 $1,280,000 March 1, 2018 720,000 June 30, 2018 920,000 October 1, 2018 720,000 January 31, 2019 288,000 April 30, 2019 621,000 August 31, 2019 918,000 On January 1, 2016, the company obtained a $3,200,000 construction loan with a 15% interest rate. The loan was outstanding all of 2018 and 2019. The company's other interest-bearing debt included two long- term notes of $3,000,000 and $7,000,000 with interest rates of 11% and 13%, respectively. Both notes were outstanding during all of 2018 and 2019. Interest is paid annually on all debt. The company's fiscal year- end is December 31. Required: 1)Calculate the amount of interest that Mason should capitalize in 2018 and 2019 using the specific interest method. 2)What is the total cost of the building? 3)Calculate the amount of interest expense that will appear in the 2018 and 2019 income statements.
In: Accounting
Actuary and trustee reports indicate the following changes in
the PBO and plan assets of Douglas-Roberts Industries during
2018:
| Prior service cost at Jan. 1,
2018, from plan amendment at the beginning of 2015 (amortization: $4 million per year) |
$ | 20 | million |
| Net loss—AOCI at Jan.1, 2018 (previous losses exceeded previous gains) | $ | 104 | million |
| Average remaining service life of the active employee group | 10 | years | |
| Actuary's discount rate | 4 | % | |
| ($ in millions) | Plan | |||||||||
| PBO | Assets | |||||||||
| Beginning of 2018 | $ | 720 | Beginning of 2018 | $ | 520 | |||||
| Service cost | 62 | Return on plan assets, | ||||||||
| 5% (7% expected) | 26.0 | |||||||||
| Interest cost, 4% | 28.8 | |||||||||
| Loss (gain) on PBO | (15 | ) | Cash contributions | 102 | ||||||
| Less: Retiree benefits | (36 | ) | Less: Retiree benefits | (36 | ) | |||||
| End of 2018 | $ | 759.8 | End of 2018 | $ | 612.0 | |||||
Required:
1-a. Determine Douglas-Roberts' pension expense
for 2018.
1.b, 2. to 4. Prepare the appropriate journal
entries to record the pension expense, to record any 2018 gains and
losses, to record the cash contribution to plan assets and to
record retiree benefits.
In: Accounting
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The number of bacteria in a certain culture grows at a rate that is proportional to the number present. If the number increased from 500 to 2000 in 2 hours, determine.
(a) The number present after 12 hours.
(b) The doubling time.
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if you could show how to do it, that'd be great.
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Fill in the blanks:
| Income ($) | Consumption ($) |
|---|---|
| 0 | 500 |
| 1000 | 1350 |
| 2000 | 2200 |
| 3000 | 3050 |
Refer to the data in the above table.
The marginal propensity to consume equals ____. If income increases to $4,000, the level of consumption will be $____.
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Question 14
A machine initally costing $520000 will have salvage value of $2000
after a 6 year life. using double declining balance depreciation
what will the book value be after the third year
In: Finance