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:

Prepare a pension worksheet for the pension plan in 2020. (Enter all amounts as positive.)

[The following information applies to the questions displayed below.]
  
In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows:

Westgate recognizes revenue over time according to percentage of completion.

Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.)

Computing EPS: Restricted Stock Awards

West Inc. granted 5,000 shares of restricted common stock shares at the beginning of 2020 to company managers that will vest after 4 years of service. Net income for the year is $360,000, and 250,000 common shares were outstanding the entire year. The fair value of the shares on January 1, 2020, is $25 per share. The average market price of common shares in 2020 is $25 per share.

a. Compute basic earnings per share.

b. Compute diluted earnings per share.

Note: Round per share amounts to two decimal places.

Flint Company has the following two temporary differences between its income tax expense and income taxes payable.

The income tax rate for all years is 20%

Assuming there were no temporary differences prior to 2020, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020, 2021, and 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Two accountants, Yuan Tsui and Sergio Aragon, are arguing about the merits of presenting an income statement in the multiple-step versus the single-step format. The discussion involves the following 2020 information for P. Bride Company (in thousands):

Common shares outstanding for 2020 total 30,000 (in thousands). Income tax for the year was $18,130.

Prepare an income statement for the year ended December 31, 2020, using the multiple-step format, showing expenses by function. Include calculation of EPS.

In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows:

Westgate recognizes revenue over time according to percentage of completion.

Required:
5. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information.

17. An infection with a rhinovirus might result in:                                                                                                

A. common cold             

B. genital warts           

C. cold sores           

D. mumps         

E. vomiting                                                                                    

18. An example of a disease caused by a retrovirus is:                                                                                        

A. mumps        

B. influenza            

C. syphilis              

D. AIDS             

E. chickenpox                             

19. Naturally acquired active immunity would be most likely acquired through which of the following processes?                                                                      
A. vaccination                     

B. drinking colostrum
C. natural birth   

D. infection with disease causing organism followed by recovery.         

20. Which of the following convey the longest lasting immunity to an infectious agent?
A. Naturally acquired passive immunity                               
B. Artificially acquired passive immunity
C. Naturally acquired active immunity
D. All of these
E. None of these

Martinez Inc. has sponsored a noncontributory, defined benefit pension plan for its employees since 1997. Prior to 2020, cumulative net pension expense recognized equaled cumulative contributions to the plan. Other relevant information about the pension plan on January 1, 2020, is as follows.

On December 31, 2020, the projected benefit obligation and the accumulated benefit obligation were $4,772,000 and $4,033,000, respectively. The fair value of the pension plan assets amounted to $4,129,000 at the end of the year. A 10% settlement rate and a 10% expected asset return rate were used in the actuarial present value computations in the pension plan. The present value of benefits attributed by the pension benefit formula to employee service in 2020 amounted to $199,000. The employer’s contribution to the plan assets amounted to $759,000 in 2020. This problem assumes no payment of pension benefits.

Part 1

Prepare a schedule, based on the average remaining life per employee, showing the prior service cost that would be amortized as a component of pension expense for 2020, 2021, and 2022. (Round answers to 0 decimal places, e.g. 2,525.)

Compute pension expense for the year 2020. (Round answers to 0 decimal places, e.g. 2,525.)

Compute the amount of the 2020 increase/decrease in net gains or losses and the amount to be amortized in 2020 and 2021. (Round answers to 0 decimal places, e.g. 2,525.)

Prepare the journal entries required to report the accounting for the company’s pension plan for 2020. (Round answers to 0 decimal places, e.g. 2,525. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)