The Warren Group’s pension expense is $67 million. This amount includes a $70 million service cost, a $50 million interest cost, a $55 million reduction for the expected return on plan assets, and a $2 million amortization of a prior service cost. How is the net pension liability affected when the pension expense is recorded?
Q: The following facts apply to the pension plan of Trudy Borke Inc. for the year 20X1: Plan assets,…
A: Pension expense is the amount that a business charges to expense in relation to its liabilities for…
Q: At the end of the current period, Agler Inc. had a projected benefit obligation of $400,000 and…
A:
Q: The projected benefit obligation was $80 million at the beginning of the year. Service cost for the…
A: Workings: Service cost = $ 10 The actual return on plan assets was expected to be $ 4 Calculation of…
Q: The projected benefit obligation was $180 million at the beginning of the year and $192 million at…
A: Formula: Projected benefit obligation at the year end = The projected benefit obligation at the…
Q: U.S. Metallurgical Inc. reported the following balances in its financial statements and disclosure…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: The PBO was $100 million at the beginning of the year and $108 million at the end of the year.…
A: Formula: Ending PBO = Beginning PBO + Interest on beginning PBO + Service cost - benefits paid
Q: For the current year, a company with a DB pension plan has service cost $106,000; benefits paid…
A: Defined benefit pension plans are the retirement designs that include providing a fixed and…
Q: The projected benefit obligation was $80 million at the beginning of the year. Service cost for the…
A: How to calculate projected benefit obligation amount at the end: Determine the fair value of the…
Q: At the end of the current year, Top Co. has a defined benefit obligation of £335,000 and pension…
A: Pension Fund The purpose of creating the pension fund is to some of the small portion of amount…
Q: At the end of the current period, JAG Co. has a defined benefit obligation of €125,000 and pension…
A: Amount of pension plan = Beginning defined benefit obligation - amount of the vested benefit for the…
Q: The following information is related to the pension plan of B, Inc. for 2016. Actual return on plan…
A: Service cost 800,000 Interest on defined benefit obligation 326500 net gain on liability -82500…
Q: The projected benefit obligation was $180 million at the beginning of the year and $192 million at…
A: Service cost: Service cost meanse the present value of retirement benefit earned by the employees…
Q: he PBO was $100 million at the beginning of the year and $106 million at the end of the year.…
A: Defined benefit plans are schemes and plans made by company for the benefit of employees in the…
Q: Pension plan assets were $900 million at the beginning of the year and $958 million at the end of…
A: Plan assets: The assets which are used to satisfy the post retirement obligation, are held as a…
Q: The projected benefit obligation was $140 million at the beginning of the year and $145 million at…
A: Projected benefits obligation (PBO): This is the estimated present value of future retirement…
Q: On January 1, 2015, Parks Co. has the following balances: Projected benefit obligation $4,200,000…
A: projected benefit obligation:- Projected Benefit obligation add: Service cost less: Benefit…
Q: Balanga, Inc. contributed P500,000 for its pension fund inclusive of P200,000 funding of current…
A: Deductible pension expenses is the cost is incurrent for the current year. Amount Contributed to…
Q: At the end of the current period, Oxford Ltd. has a defined benefit obligation of $195,000 and…
A: Compute the amount related to its pension plan will be reported on the company's statement of…
Q: For Windsor Corporation, year-end plan assets were $1,999,000. At the beginning of the year, plan…
A: Increase in plan assets = Ending plan assets - beginning plan assets =$1,999,000-1,773,000 =…
Q: The projected benefit obligation was $80 million at the beginning of the year and $85 million at the…
A: Interest cost = Projected benefit obligation at the beginning of the year x Actuary’s discount rate…
Q: Riko Company had the following data related to its defined benefit pension plan: 1/1 Plan Assets…
A: In this question, we have been asked to calculate the ending balance of the pension fund. For which…
Q: Pension plan assets were $80 million at the beginning of the year and $83 million at the end of the…
A: Plan assets at the end of year = Plan assets at the beginning + Return on plan + Cash contribution -…
Q: For 2020, Carson Majors Inc. had pension expense of $77 million and contributed $55 million to the…
A: In the given situation, total pension expenses are $77 million and amount contributed to the pension…
Q: The projected benefit obligation was $80 million at the beginning of the year. Service cost for the…
A: Interest cost = Projected benefit obligation at the beginning of the year x Actuary’s discount rate…
Q: FS LTD. has a defined benefit pension plan. As at 31 December 2018, its plan assets had a book value…
A: As per IAS 19, Plan assets are always shown at fair value (cost is irrelevant). Therefore, plan…
Q: In a recent year’s financial statements, Procter & Gamble showed an unfunded pension liability…
A: Pension: Pension is a cash payment given to the employees at the time of their retirement. The…
Q: The projected benefit obligation was $80 million at the beginning of the year and $85 million at the…
A: Particulars Amount Projected benefit obligation at the beginning of the year $80 million…
Q: For Stubby Corporation, year-end plan assets were P2, 000,000. At the beginning of the year, plan…
A: Actual return on plan assets = Ending balance of plan assets - Beginning balance of plan assets +…
Q: The projected benefit obligation was $300 million at the beginning of the year. Service cost for the…
A:
Q: the warren groups pension expense is 78 million. the amount includes a 46 million service cost, a 60…
A:
Q: Pension plan assets were $100 million at the beginning of the year and $104 million at the end of…
A:
Q: At the beginning of current year, Maximus Company had projected benefit obligation of P10,000,000…
A: Computation of Pension worksheet:
Q: Pension plan assets were $120 million at the beginning of the year and $130 million at the end of…
A:
Q: For 2017, Carson Majors Inc. had pension expense of $77 million and contributed $55 million to the…
A: Pension: A fixed sum of money, receivable in future or after the age of retirement, which the…
Q: JDS Foods’ projected benefit obligation, accumulated benefit obligation, and plan assets were $40…
A: Calculation of pension liability: Particulars Amount Projected benefit obligation $40 million…
Q: The Warren Group’s pension cost is $39 million. This amount includes a $68 million service cost, a…
A: 1. Determine the components of pension expense that affects the net pension liability:
Q: At the end of the current period, Oxford Ltd. has a defined benefit obligation of $195,000 and…
A: Pension plan: This is the plan devised by corporations to pay the employees an income after their…
Q: The Warren Group’s pension cost is $67 million. This amount includes a $70 million service cost, a…
A: Pension expense: Pension expense is an expense to the employer paid as compensation after the…
Q: The projected benefit obligation was $400 million at the beginning of the year and $429 million at…
A:
Q: Pension plan assets were $80 million at the beginning of the year. The return on plan assets was 5%.…
A: Working note 1: Compute the actual return on plan assets. Pension plan assets at the beginning…
Q: The projected benefit obligation was $80 million at the beginning of the year and $85 million at the…
A:
Q: Presented below is information related to the pension plan of Ivanhoe Inc. for the year 2021. 1.…
A: Given the following information: Service cost related to pension expense: $233,000 Projected…
Q: Pension data for the Ben Franklin Company Include the following for the current calendar year:…
A: Journal entry - It refers to the process where the business transactions are recorded in the books…
Q: U.S. Metallurgical Incorporated reported the following balances in its financial statements and…
A: Pension expense refers to the amount of money which the business charges to the expenses against the…
Q: Pension plan assets were $340 million at the beginning of the year. The return on plan assets was…
A:
Q: What is the pension expense for 20X1?
A: Pension expense is the amount that a business charges to expense in relation to its liabilities for…
Q: JDS Shipyard's projected benefit obligation, accumulated benefit obligation, and plan assets were…
A: a.
Q: JDS Shipyard’s projected benefit obligation, accumulated benefit obligation, and plan assets were…
A: Calculation of pension liability: Particulars Amount Projected benefit obligation $40 million…
Q: At the end of the current year, Kennedy Co. has a defined benefit obligation of $335,000 and pension…
A: Difference between defined benefit obligation and fair value of plan assets is reported on balance…
The Warren Group’s pension expense is $67 million. This amount includes a $70 million service cost, a
$50 million interest cost, a $55 million reduction for the expected return on plan assets, and a $2 million amortization
of a prior service cost. How is the net pension liability affected when the pension expense is recorded?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- The Warren Group’s pension cost is $67 million. This amount includes a $70 million service cost, a $50 million interest cost, a $55 million reduction for the expected return on plan assets, and a $2 million amortization of a prior service cost. How is the net pension liability affected when the pension cost is recorded?the warren groups pension expense is 78 million. the amount includes a 46 million service cost, a 60 million interest cost, a 34 million reduction for the expected return on plan assets, and a 6 million amoritization of a prior service cost. prepare the journal entry to record the pension expense?Riko Company had the following data related to its defined benefit pensionplan: 1/1 Plan Assets Fair Value, $600m; Expected return on plan assets, $60m; ActualReturn on Plan Assets, $48m; Contributions to the pension fund at the end of the year,$100m; Amortization of net loss, $10m; Pension Benefits paid at the end of the year,$11m; Pension Expense, $72 million. What is the balance in Pension Plan Assets at12/31? _________
- The Warren Group’s pension cost is $39 million. This amount includes a $68 million service cost, a $36 million interest cost, a $67 million reduction for the expected return on plan assets, and a $2 million amortization of a prior service cost. 1. Choose the components of pension expense that affects the net pension liability: Service costunanswered Amortization of prior service costunanswered Interest costunanswered Expected return on plan assets 2. Prepare the journal entry to record the pension cost.3. Presented below is information related to the pension plan of Zimmer Inc. for the year 2018. 1. The service cost related to pension expense is $260,000 using the projected benefits approach. 2. The projected benefit obligation and the accumulated benefit obligation at the beginning of the year are $350,000 and $280,000, respectively. The expected return on plan assets is 9% and the settlement rate is 10%. 3. The accumulated OCI – prior service cost at the beginning of the year is $140,000. The company has a workforce of 200 employees, all who are expected to receive benefits under the plan. The total number of service- years is 1,000 and the service-years attributable to 2018 is 200. The company has decided to use the years-of-service method of amortization for these costs. At the beginning of the period, the fair value of pension plan assets was $280,000. The company had an Accumulated OCI (loss) at the beginning of the period of $90,000. Any amortization of unrecognized net loss…Harrison Forklift's pension expense includes a service cost of $27 million. Harrison began the year with a pension liability of $47 million (underfunded pension plan). Interest cost, $8; expected return on assets, $21; amortization of net loss, $6. Interest cost, $23; expected return on assets, $17; amortization of net gain, $6. Interest cost, $23; expected return on assets, $17; amortization of net loss, $6; amortization of prior service cost, $7 million. Required:Prepare the appropriate general journal entries to record Harrison’s pension expense in each of the above independent situations regarding the other (non-service cost) components of pension expense ($ in millions): (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
- Under the defined-benefit pension plan for a company, the expected return on plan assets is $124,000 and actual return on plan assets is $269,000 in 2021. To record the unexpected gain/loss due to asset returns, the company will (enter 1, 2, 3, or 4 that represents the correct answer): Debit Other Comprehensive Income-Gain/Loss Credit Pension Expense Debit Pension Expense Debit Plan AssetsPresented below is information related to the pension plan of Ivanhoe Inc. for the year 2021. 1. The service cost related to pension expense is $233,000 using the projected benefits approach. 2. The projected benefit obligation and the accumulated benefit obligation at the beginning of the year are $313,000 and $266,000, respectively. The expected return on plan assets is 9% and the settlement rate is 10%. 3. The accumulated OCI – prior service cost at the beginning of the year is $133,000. The company has a workforce of 200 employees, all who are expected to receive benefits under the plan. The total number of service-years is 1,000 and the service-years attributable to 2021 is 200. The company has decided to use the years-of-service method of amortization for these costs. 4. At the beginning of the period, the fair value of pension plan assets was $266,000. The company had an Accumulated OCI (loss) at the beginning of the period of $83,000. Any amortization of…Harrison Forklift's pension expense Includes a service cost of $23 million. Harrison began the year with a pension liability of $43 million (underfunded pension plan). 1. Interest cost, $11; expected return on assets, $17; amortization of net loss, $5. 2. Interest cost, $19; expected return on assets, $14; amortization of net gain, $5. 3. Interest cost, $19; expected return on assets, $14; amortization of net loss, $5; amortization of prior service cost, $6 million. Required: Prepare the appropriate general Journal entries to record Harrison's pension expense in each of the above Independent situations regarding the other (non-service cost) components of pension expense ($ in millions): (If no entry is required for a transaction/event, select "No journal entry required" In the first account field. Enter your answers in millions (l.e., 10,000,000 should be entered as 10).) View transaction list Journal entry worksheet < 2 3 1 Prepare the appropriate journal entry to record pension…
- Presented below is information related to the pension plan of Sandhill Inc. for the year 2021. 1. The service cost related to pension expense is $250,000 using the projected benefits approach. 2. The projected benefit obligation and the accumulated benefit obligation at the beginning of the year are $330,000 and $300,000, respectively. The expected return on plan assets is 9% and the settlement rate is 10%. 3. The accumulated OCI – prior service cost at the beginning of the year is $150,000. The company has a workforce of 200 employees, all who are expected to receive benefits under the plan. The total number of service-years is 1,000 and the service-years attributable to 2021 is 200. The company has decided to use the years-of-service method of amortization for these costs. 4. At the beginning of the period, the fair value of pension plan assets was $300,000. The company had an Accumulated OCI (loss) at the beginning of the period of $100,000. Any amortization of…JDS Foods’ projected benefit obligation, accumulated benefit obligation, and plan assets were $40 million, $30 million, and $25 million, respectively, at the end of the year. What, if any, pension liability must be reported in the balance sheet? What would JDS report if the plan assets were $45 million instead?JDS Shipyard's projected benefit obligation, accumulated benefit obligation, and plan assets were $65 million, $55 million, and $48 million, respectively, at the end of the year. a. What, if any, pension liability or pension asset must be reported in the balance sheet? b. What, if any, pension liability or pension asset must be reported in the balance sheet if the plan assets were $78 million instead? a b Net pension liability Net pension asset Answer is not complete. million million