![Problem 17-6 Determine the PBO; plan assets; pension expense; two years [LO17-3,17-4,17-6] Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2016. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10% rate of return. A consulting firm, engaged as actuary, recommends 5% as the appropriate discount rate. The service cost is $160,000 for 2016 and $250,000 for 2017. Year-end funding is $170,000 for 2016 and $180,000 for 2017. No assumptions or estimates were revised during 2016. Required Calculate each of the following amounts as of both December 31, 2016, and December 31, 2017: (Enter your answers in thousands (i.e., 200,000 should be entered as 200).) December 31, 2016 December 31, 2017 1. Projected benefit obligation 2. Plan assets 3. Pension expense 4. Net pension asset or net pension liability](http://img.homeworklib.com/questions/4ece94a0-8c08-11eb-b6c7-8386bd46edc6.png?x-oss-process=image/resize,w_560)
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Problem 17-6 Determine the PBO; plan assets; pension expense; two years [LO17-3,17-4,17-6] Stanley-Morgan Industries adopted...
Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2021. The provisions of the...
Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2021. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10% rate of return. The actual return was also 10% in 2021 and 2022.* A consulting firm, engaged as actuary, recommends 6% as the appropriate discount rate. The service cost is $150,000 for 2021 and $200,000 for 2022. Year-end funding...
Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2021. The provisions of the...
Stanley-Morgan Industries adopted a defined benefit pension plan
on April 12, 2021. The provisions of the plan were not made
retroactive to prior years. A local bank, engaged as trustee for
the plan assets, expects plan assets to earn a 10% rate of return.
The actual return was also 10% in 2021 and 2022.* A consulting
firm, engaged as actuary, recommends 5% as the appropriate discount
rate. The service cost is $260,000 for 2021 and $350,000 for 2022.
Year-end funding...
Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2018. The provisions of the...
Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2018. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the pla The actual return was also 10% in 2018 and 2019.' A consulting firm, engaged as actuary, recommends 6% as the appropriate discount rate. The service cost is $250,000 for 2018 and $360,000 for 2019. Year-end funding is $260,000 for 2018 and $270,000 for 2019. No assumptions or...
Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2018. The provisions of the...
Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2018. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10% rate of return. The actual return was also 10% in 2018 and 2019.* A consulting firm, engaged as actuary, recommends 5% as the appropriate discount rate. The service cost is $160,000 for 2018 and $210,000 for 2019. Year-end funding...
Problem 17-9 Determine pension expense; PBO; plan assets; net pension asset or liability; Journal entries [LO17-3,...
Problem 17-9 Determine pension expense; PBO; plan assets; net pension asset or liability; Journal entries [LO17-3, 17-4, 17-5, 17-6,17-7,17-8] U.S. Metallurgical Inc. reported the following balances in its financial statements and disclosure notes at December 31, 2017 Plan assets Projected benefit obligation $550.000 428,888 U.S.M.'s actuary determined that 2018 service cost is $75,000. Both the expected and actual rate of return on plan assets are 8%. The interest (discount) rate is 5%. U.S.M. contributed $135,000 to the pension fund at...
Required information Problem 17-16 Comprehensive-reporting a pension plan; pension spreadsheet; determine changes in balances; two years...
Required information Problem 17-16 Comprehensive-reporting a pension plan; pension spreadsheet; determine changes in balances; two years [LO17-3, 17-4, 17-5, 17-6, 17-7, 17-8] [The following information applies to the questions displayed below.) Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2018: Prior service cost at Jan. 1, 2018, from plan amendment at the beginning of 2016 (amortization: $6 million per year) Net loss-pensions at Jan.1, 2018 (previous losses exceeded previous gains)...
Exercise 17-19 (Algo) Record pension expense, funding, and gains and losses; determine account balances [LO17-6, 17-7,...
Exercise 17-19 (Algo) Record pension expense, funding, and gains and losses; determine account balances [LO17-6, 17-7, 17-8] Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2021 (the end of Beale's fiscal year), the Following pension-related data were available: Projected Benefit Obligation ($ in millions) Balance, January 1, 2021 $ 420 Service cost 44 Interest cost, discount rate, 5x Gain due to changes in actuarial assumptions in 2021 (12) Pension benefits paid (21) Balance, December 31, 2021...
Problem 17-7 Determining the amortization of net gain (LO17-6] Herring Wholesale Company has a defined benefit...
Problem 17-7 Determining the amortization of net gain (LO17-6] Herring Wholesale Company has a defined benefit pension plan. On January 1, 2018, the following pension related data were available: Net gain-AOCI Accumulated benefit obligation Projected benefit obligation Fair value of plan assets Average remaining service period of active employees (expected to remain constant for the next several years) ($ in 200s) $372 2,670 2,600 2,200 16years The rate of return on plan assets during 2018 was 7%, although it was...
Exercise 17-15 Pension spreadsheet [LO17-8] A partially completed pension spreadsheet showing the relationships among the elements...
Exercise 17-15 Pension spreadsheet [LO17-8] A partially completed pension spreadsheet showing the relationships among the elements that comprise the defined benefit pension plan of Universal Products is given below. The actuary's discount rate is 5%. At the end of 2016, the pension formula was amended. creating a prior service cost of $280.000. The expected rate of return on assets was 8%, and the average remaining service life of the active employee group is 20 years in the current year as...
The blank company has a defined benefit pension plan. Pension information for the fiscal years of...
The blank company has a defined benefit pension plan. Pension information for the fiscal years of 2024 and 2025 are presented below ($ in millions) Info from by pension actuary Projected benefit obligation as of December 31, 2023 = $1,800 Prior service cost from plan amendment on January 2, 2024 = $400 (straight line amortization for a 10 year average remaining service period) Service cost for 2024 = $520 Service cost for 2025 = $570 Discount rate used by actuary...
Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2021. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10% rate of return. The actual return was also 10% in 2021 and 2022.* A consulting firm, engaged as actuary, recommends 6% as the appropriate discount rate. The service cost is $150,000 for 2021 and $200,000 for 2022. Year-end funding...
Stanley-Morgan Industries adopted a defined benefit pension plan
on April 12, 2021. The provisions of the plan were not made
retroactive to prior years. A local bank, engaged as trustee for
the plan assets, expects plan assets to earn a 10% rate of return.
The actual return was also 10% in 2021 and 2022.* A consulting
firm, engaged as actuary, recommends 5% as the appropriate discount
rate. The service cost is $260,000 for 2021 and $350,000 for 2022.
Year-end funding...
Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2018. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the pla The actual return was also 10% in 2018 and 2019.' A consulting firm, engaged as actuary, recommends 6% as the appropriate discount rate. The service cost is $250,000 for 2018 and $360,000 for 2019. Year-end funding is $260,000 for 2018 and $270,000 for 2019. No assumptions or...
Problem 17-9 Determine pension expense; PBO; plan assets; net pension asset or liability; Journal entries [LO17-3, 17-4, 17-5, 17-6,17-7,17-8] U.S. Metallurgical Inc. reported the following balances in its financial statements and disclosure notes at December 31, 2017 Plan assets Projected benefit obligation $550.000 428,888 U.S.M.'s actuary determined that 2018 service cost is $75,000. Both the expected and actual rate of return on plan assets are 8%. The interest (discount) rate is 5%. U.S.M. contributed $135,000 to the pension fund at...
Required information Problem 17-16 Comprehensive-reporting a pension plan; pension spreadsheet; determine changes in balances; two years [LO17-3, 17-4, 17-5, 17-6, 17-7, 17-8] [The following information applies to the questions displayed below.) Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2018: Prior service cost at Jan. 1, 2018, from plan amendment at the beginning of 2016 (amortization: $6 million per year) Net loss-pensions at Jan.1, 2018 (previous losses exceeded previous gains)...
Exercise 17-19 (Algo) Record pension expense, funding, and gains and losses; determine account balances [LO17-6, 17-7, 17-8] Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2021 (the end of Beale's fiscal year), the Following pension-related data were available: Projected Benefit Obligation ($ in millions) Balance, January 1, 2021 $ 420 Service cost 44 Interest cost, discount rate, 5x Gain due to changes in actuarial assumptions in 2021 (12) Pension benefits paid (21) Balance, December 31, 2021...
Problem 17-7 Determining the amortization of net gain (LO17-6] Herring Wholesale Company has a defined benefit pension plan. On January 1, 2018, the following pension related data were available: Net gain-AOCI Accumulated benefit obligation Projected benefit obligation Fair value of plan assets Average remaining service period of active employees (expected to remain constant for the next several years) ($ in 200s) $372 2,670 2,600 2,200 16years The rate of return on plan assets during 2018 was 7%, although it was...
Exercise 17-15 Pension spreadsheet [LO17-8] A partially completed pension spreadsheet showing the relationships among the elements that comprise the defined benefit pension plan of Universal Products is given below. The actuary's discount rate is 5%. At the end of 2016, the pension formula was amended. creating a prior service cost of $280.000. The expected rate of return on assets was 8%, and the average remaining service life of the active employee group is 20 years in the current year as...
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