Homework Answers
Pension Expense = 677 Millions
Explanation
| Calculation of Pension Expense | |
| $ | |
| (in Millions) | |
| Service Cost | 366.00 |
| Interest cost on P.B.O | 737.00 |
| Return on the plan assets | (593.00) |
| Prior service cost amortization | 13.00 |
| Amortization of net loss | 154.00 |
| Pension Expense | 677.00 |
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Brief Exercise 20-01 AMR Corporation (parent company of American Airlines) reported the following (in millions). Service...
Brief Exercise 20-05 Blossom Corporation amended its pension plan on January 1, 2020, and granted $165,900...
Brief Exercise 20-05 Blossom Corporation amended its pension plan on January 1, 2020, and granted $165,900 of prior service costs to its employees. The employees are expected to provide 2,100 service years in the future, with 310 service years in 2020. Compute prior service cost amortization for 2020. Prior service cost amortization for 2020 Click if you would like to Show Work for this question: Open Show Work
Exercise 20-09 (Part Level Submission) Sarasota Enterprises provides the following information relative to its defined benefit...
Exercise 20-09 (Part Level Submission) Sarasota Enterprises provides the following information relative to its defined benefit pension plan. $2,721,600 1,981,200 2,282,900 209,800 45,300 438,700 Balances or Values at December 31, 2020 Projected benefit obligation Accumulated benefit obligation Fair value of plan assets Accumulated OCI (PSC) Accumulated OCI-Net loss (1/1/20 balance, 0) Pension liability Other pension plan data for 2020: Service cost Prior service cost amortization Actual return on plan assets Expected return on plan assets Interest on January 1, 2020,...
Exercise 20-13 Wildhorse Company sponsors a defined benefit pension plan. The corporation's actuary provides the following...
Exercise 20-13 Wildhorse Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about the plan. January 1, 2017 $1,560 2,010 2,260 1,540 Vested benefit obligation Accumulated benefit obligation Projected benefit obligation Plan assets (fair value) Settlement rate and expected rate of return Pension asset/liability Service cost for the year 2017 Contributions (funding in 2017) Benefits paid in 2017 December 31, 2017 $2,010 2,820 3,630 2,560 10 % 720 400 730 200 (a) Compute the actual...
Exercise 20-2 Vaughn Company provides the following information about its defined benefit pension plan for the...
Exercise 20-2
Vaughn Company provides the following information about its
defined benefit pension plan for the year 2017.
Service cost
$ 88,500
Contribution to the plan
107,100
Prior service cost amortization
10,600
Actual and expected return on plan assets
63,100
Benefits paid
40,800
Plan assets at January 1, 2017
648,000
Projected benefit obligation at January 1, 2017
688,100
Accumulated OCI (PSC) at January 1, 2017
148,600
Interest/discount (settlement) rate
11
%
Compute the pension expense for the year 2017.
Pension...
The following incomplete (columns have missing amounts) pension spreadsheet is for Old Tucson Corporation (OTC). Plan...
The following incomplete (columns have missing amounts) pension spreadsheet is for Old Tucson Corporation (OTC). Plan assets Prior service cost Net (Gain) loss 50 Pension Expenses PBO (460) Cash Net Pension (Liability)/ Asset 50 (19) (1.50) ($ in millions) debit (credit) Beginning Balance Service cost Interest cost Expected return on assets Gain/loss on assets Amortization of: Prior service cost Net gain loss LOSS on PBO Contribution to funds Retiree benefits paid Ending balance (3) (21) 21 (44) 35 (35) 266...
Exercise 20-2 xYour answer is incorrect. Try again Sheridan Company provides the following information about its...
Exercise 20-2 xYour answer is incorrect. Try again Sheridan Company provides the following information about its defined benefit pension plan for the year 2017. Service cost Contribution to the plan Prior service cost amortization Actual and expected return on plan assets Benefits paid Plan assets at January 1, 2017 Projected benefit obligation at January 1, 2017 Accumulated OCI (PSC) at January 1, 2017 Interest/discount (settlement) rate $91,400 102,900 9,600 64,900 40,600 632,300 686,100 147,300 11 % Compute the pension expense...
The following defined pension dates of Doreen Corporation apply to the year 20x1: Projected benefit obligation,...
The following defined pension dates of Doreen Corporation apply to the year 20x1: Projected benefit obligation, 1/1/xl (before amendment) $560,800 Plan assets, 1/1/x1 $546,200 Prepaid accrued pension cost (credit) 14,600 On January 1, 20x1, Doreen Corp, through plan amendment, grants prior service benefits having a present value of $100,000 Settlement rate 9% Annual pension service cost 58.000 Contributions (funding) 55,000 Actual return on plan assets 52.280 Benefits paid to retirees 40,000 Prior service cost amortization for 20x1 17,000 Instructions For...
The following incomplete (columns have missing amounts) pension spreadsheet is for Old Tucson Corporation (OTC). Prior...
The following incomplete (columns have missing amounts) pension spreadsheet is for Old Tucson Corporation (OTC). Prior Net ($ in millions) debit (Credit) Beginning balance Service cost Interest cost Plan PBO Assets (520) Service (Gain) Pension Net Pension Expense Cash (Liability)/Asset Cost Lss 64 68 Expected return on assets Gain/loss on assets (25) (4) Amortization of: Prior service cost Net gain/ loss (8) Loss on PBO Contributions to fund (27) 27 (62) Retiree benefits paid (47) 47 84 (598) (298) 300...
*Exercise 20-1 The following information is available for the pension plan of Radcliffe Company for the...
*Exercise 20-1 The following information is available for the pension plan of Radcliffe Company for the year 2017 15,000 40,000 90,000 Actual and expected return on plan assets Benefits paid to retirees Contributions (funding) Interest/discount rate Prior service cost amortization Projected benefit obligation, January 1, 2017 Service cost 1096 8,000 500,000 60,000 Compute pension expense for the year 2017 Pension expense for 2017 Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in...
Brief Exercise 20-11 Bridgeport Corporation has the following information available concerning its postretirement benefit plan for...
Brief Exercise 20-11
Bridgeport Corporation has the following information available
concerning its postretirement benefit plan for 2017.
Service cost
$41,100
Interest cost
48,600
Actual and expected return on plan assets
25,400
Compute Bridgeport’s 2017 postretirement expense.
Postretirement expense 2017
$
Brief Exercise 20-05 Blossom Corporation amended its pension plan on January 1, 2020, and granted $165,900 of prior service costs to its employees. The employees are expected to provide 2,100 service years in the future, with 310 service years in 2020. Compute prior service cost amortization for 2020. Prior service cost amortization for 2020 Click if you would like to Show Work for this question: Open Show Work
Exercise 20-09 (Part Level Submission) Sarasota Enterprises provides the following information relative to its defined benefit pension plan. $2,721,600 1,981,200 2,282,900 209,800 45,300 438,700 Balances or Values at December 31, 2020 Projected benefit obligation Accumulated benefit obligation Fair value of plan assets Accumulated OCI (PSC) Accumulated OCI-Net loss (1/1/20 balance, 0) Pension liability Other pension plan data for 2020: Service cost Prior service cost amortization Actual return on plan assets Expected return on plan assets Interest on January 1, 2020,...
Exercise 20-13 Wildhorse Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about the plan. January 1, 2017 $1,560 2,010 2,260 1,540 Vested benefit obligation Accumulated benefit obligation Projected benefit obligation Plan assets (fair value) Settlement rate and expected rate of return Pension asset/liability Service cost for the year 2017 Contributions (funding in 2017) Benefits paid in 2017 December 31, 2017 $2,010 2,820 3,630 2,560 10 % 720 400 730 200 (a) Compute the actual...
Exercise 20-2
Vaughn Company provides the following information about its
defined benefit pension plan for the year 2017.
Service cost
$ 88,500
Contribution to the plan
107,100
Prior service cost amortization
10,600
Actual and expected return on plan assets
63,100
Benefits paid
40,800
Plan assets at January 1, 2017
648,000
Projected benefit obligation at January 1, 2017
688,100
Accumulated OCI (PSC) at January 1, 2017
148,600
Interest/discount (settlement) rate
11
%
Compute the pension expense for the year 2017.
Pension...
The following incomplete (columns have missing amounts) pension spreadsheet is for Old Tucson Corporation (OTC). Plan assets Prior service cost Net (Gain) loss 50 Pension Expenses PBO (460) Cash Net Pension (Liability)/ Asset 50 (19) (1.50) ($ in millions) debit (credit) Beginning Balance Service cost Interest cost Expected return on assets Gain/loss on assets Amortization of: Prior service cost Net gain loss LOSS on PBO Contribution to funds Retiree benefits paid Ending balance (3) (21) 21 (44) 35 (35) 266...
Exercise 20-2 xYour answer is incorrect. Try again Sheridan Company provides the following information about its defined benefit pension plan for the year 2017. Service cost Contribution to the plan Prior service cost amortization Actual and expected return on plan assets Benefits paid Plan assets at January 1, 2017 Projected benefit obligation at January 1, 2017 Accumulated OCI (PSC) at January 1, 2017 Interest/discount (settlement) rate $91,400 102,900 9,600 64,900 40,600 632,300 686,100 147,300 11 % Compute the pension expense...
The following defined pension dates of Doreen Corporation apply to the year 20x1: Projected benefit obligation, 1/1/xl (before amendment) $560,800 Plan assets, 1/1/x1 $546,200 Prepaid accrued pension cost (credit) 14,600 On January 1, 20x1, Doreen Corp, through plan amendment, grants prior service benefits having a present value of $100,000 Settlement rate 9% Annual pension service cost 58.000 Contributions (funding) 55,000 Actual return on plan assets 52.280 Benefits paid to retirees 40,000 Prior service cost amortization for 20x1 17,000 Instructions For...
The following incomplete (columns have missing amounts) pension spreadsheet is for Old Tucson Corporation (OTC). Prior Net ($ in millions) debit (Credit) Beginning balance Service cost Interest cost Plan PBO Assets (520) Service (Gain) Pension Net Pension Expense Cash (Liability)/Asset Cost Lss 64 68 Expected return on assets Gain/loss on assets (25) (4) Amortization of: Prior service cost Net gain/ loss (8) Loss on PBO Contributions to fund (27) 27 (62) Retiree benefits paid (47) 47 84 (598) (298) 300...
*Exercise 20-1 The following information is available for the pension plan of Radcliffe Company for the year 2017 15,000 40,000 90,000 Actual and expected return on plan assets Benefits paid to retirees Contributions (funding) Interest/discount rate Prior service cost amortization Projected benefit obligation, January 1, 2017 Service cost 1096 8,000 500,000 60,000 Compute pension expense for the year 2017 Pension expense for 2017 Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in...
Brief Exercise 20-11
Bridgeport Corporation has the following information available
concerning its postretirement benefit plan for 2017.
Service cost
$41,100
Interest cost
48,600
Actual and expected return on plan assets
25,400
Compute Bridgeport’s 2017 postretirement expense.
Postretirement expense 2017
$
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