The approach adopted by the accounting profession to measure a firm s pension obligation is the:...
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The approach adopted by the accounting profession to measure a firm s pension obligation is the:
vested benefit obligation.
accumulated benefit obligation.
projected benefit obligation.
defined benefit obligation.
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A pension liability is reported when
the projected benefit obligation exceeds the fair value of pension plan assets.
the pension expense reported for the period is greater than the funding amount for the same period.
accumulated other comprehensive income exceeds the fair value of pension plan assets.
the accumulated benefit obligation is less than the fair value of pension plan assets.
Homework Answers
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Answer 1)projected benefit obligation Answer 2)the projected benefit obligation exceeds the fair value of pension plan assets. |
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The approach adopted by the accounting profession to measure a
firm s pension obligation is the:...
Intermediate Accounting 2 - Chapter 20: Multiple Choice 1. A pension liability is reported when a....
Intermediate Accounting 2 - Chapter 20: Multiple Choice 1. A pension liability is reported when a. the accumulated benefit obligation is less than the fair value of pension plan assets. b. the projected benefit obligation exceeds the fair value of pension plan assets. c. accumulated other comprehensive income exceeds the fair value of pension plan assets. d. the pension expense reported for the period is greater than the funding amount for the same period. 2. The relationship between the amount...
Kingbird Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about the plan. January 1, 2017 $1,400 2,080 2,420 1,610 December 31, 2017 $...
Kingbird Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about the plan. January 1, 2017 $1,400 2,080 2,420 1,610 December 31, 2017 $2,080 2,970 3,550 2,520 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 Contributions (funding in 2017) Benefits paid in 2017 10% 810 the year 2017 410 650 190 (a) Compute the actual return on the...
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...
E20-9B (L05) (Disclosures: Pension Expense and Other Comprehensive Income) Ocean Air provides the following infor- mation...
E20-9B (L05) (Disclosures: Pension Expense and Other Comprehensive Income) Ocean Air provides the following infor- mation related to its defined-benefit pension plan. $4,195,000 3,280,000 2,680,000 3,726,000 368,000 26,800 469,000 Balances or Values at December 31, 2017 Projected benefit obligation Accumulated benefit obligation Vested benefit obligation Fair value of plan assets Accumulated OCI (PSC) Accumulated OCI—Net loss (January 1, 2017 balance,-0-) Pension liability Other pension plan data Service cost for 2017 Prior service cost amortization for 2017 Actual return on plan...
Bonita Company sponsors a defined benefit pension plan. The corporation’s actuary provides the following information about...
Bonita Company sponsors a defined benefit pension plan. The
corporation’s actuary provides the following information about the
plan.
January 1,
2017
December
31, 2017
Vested benefit
obligation
$1,390
$1,750
Accumulated benefit
obligation
1,750
2,850
Projected benefit
obligation
2,350
3,540
Plan assets (fair value)
1,820
2,550
Settlement rate and expected
rate of return
10
%
Pension asset/liability
530
?
Service cost for the year
2017
440
Contributions (funding in
2017)
720
Benefits paid in 2017
220
(a) Compute the actual return...
#4 Velasquez Company has available the following information about its defined-benefit pension plan for the year...
#4 Velasquez Company has available the following information about its defined-benefit pension plan for the year ending December 31, 2018: Service cost for 2018 Accumulated benefit obligation Plan assets at fair value Accumulated OCI (PSC) Vested benefit obligation Market-related asset value Projected benefit obligation Accumulated OCI net gain Interest on projected benefit obligation $ 45,000 683,000 630,000 300,000 505,000 725,000 865,000 90,000 64,000 Instructions (a) Calculate the pension asset / liability to be recorded at December 31, 2018. (b) Calculate...
CASE 14-5 Pension Funding Status Penny Pincher Company has a defined benefit pension plan for its...
CASE 14-5 Pension Funding Status Penny Pincher Company has a defined benefit pension plan for its employees. The following pension data are available at year-end (in millions): Accumulated benefit obligation $142 Projected benefit obligation 205 Fair value of plan assets 175 There is no balance in prepaid/accrued pension costs. Required: a. Calculate the funded status of the plan (see SFAS No. 158 for a definition of funded status). Is the plan overfunded or underfunded? b. If the projected benefit obligation...
Intermediate Accounting 303 Gordon Company sponsors a defined benefit pension plan. The following information related to...
Intermediate Accounting 303 Gordon Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2010 and 2011. 2010 2011 Plan assets (fair value), December 31 $699,000 $849,000 Projected benefit obligation, January 1 700,000 800,000 Pension asset/liability, January 1 140,000Cr ? Prior service cost, January 1 250,000 240,000 Service cost 60,000 90,000 Actual and expected return on plan assets 24,000 30,000 Amortization of prior service cost 10,000 12,000 Contributions (funding) 115,000 120,000 Accumulated...
Presented below is information related to Marina Comp, Inc. pension plan for 2013. Accumulated benefit obligation...
Presented below is information related to Marina Comp, Inc. pension plan for 2013. Accumulated benefit obligation (at year-end) $600,000 Service cost 520,000 Funding contribution for 2013 480,000 Settlement rate used in actuarial computation 10% Expected return on plan assets 9% Amortization of PSC (due to benefit increase) 100,000 Amortization of net gains 48,000 Projected benefit obligation (at beginning of period) 450,000 Fair value of plan assets (at beginning of...
The following pension plan information is for Pharoah Company at December 31, 2018. Projected benefit obligation...
The following pension plan information is for Pharoah Company at December 31, 2018. Projected benefit obligation $ 8600000 Accumulated benefit obligation 7550000 Plan assets (at fair value) 6128000 Accumulated OCI (PSC) 460000 Pension expense for 2018 2600000 Contribution for 2018 2008000 The amount to be reported as the liability for pensions on the December 31, 2018 balance sheet is
Kingbird Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about the plan. January 1, 2017 $1,400 2,080 2,420 1,610 December 31, 2017 $2,080 2,970 3,550 2,520 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 Contributions (funding in 2017) Benefits paid in 2017 10% 810 the year 2017 410 650 190 (a) Compute the actual return on the...
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...
E20-9B (L05) (Disclosures: Pension Expense and Other Comprehensive Income) Ocean Air provides the following infor- mation related to its defined-benefit pension plan. $4,195,000 3,280,000 2,680,000 3,726,000 368,000 26,800 469,000 Balances or Values at December 31, 2017 Projected benefit obligation Accumulated benefit obligation Vested benefit obligation Fair value of plan assets Accumulated OCI (PSC) Accumulated OCI—Net loss (January 1, 2017 balance,-0-) Pension liability Other pension plan data Service cost for 2017 Prior service cost amortization for 2017 Actual return on plan...
Bonita Company sponsors a defined benefit pension plan. The
corporation’s actuary provides the following information about the
plan.
January 1,
2017
December
31, 2017
Vested benefit
obligation
$1,390
$1,750
Accumulated benefit
obligation
1,750
2,850
Projected benefit
obligation
2,350
3,540
Plan assets (fair value)
1,820
2,550
Settlement rate and expected
rate of return
10
%
Pension asset/liability
530
?
Service cost for the year
2017
440
Contributions (funding in
2017)
720
Benefits paid in 2017
220
(a) Compute the actual return...
#4 Velasquez Company has available the following information about its defined-benefit pension plan for the year ending December 31, 2018: Service cost for 2018 Accumulated benefit obligation Plan assets at fair value Accumulated OCI (PSC) Vested benefit obligation Market-related asset value Projected benefit obligation Accumulated OCI net gain Interest on projected benefit obligation $ 45,000 683,000 630,000 300,000 505,000 725,000 865,000 90,000 64,000 Instructions (a) Calculate the pension asset / liability to be recorded at December 31, 2018. (b) Calculate...
CASE 14-5 Pension Funding Status Penny Pincher Company has a defined benefit pension plan for its employees. The following pension data are available at year-end (in millions): Accumulated benefit obligation $142 Projected benefit obligation 205 Fair value of plan assets 175 There is no balance in prepaid/accrued pension costs. Required: a. Calculate the funded status of the plan (see SFAS No. 158 for a definition of funded status). Is the plan overfunded or underfunded? b. If the projected benefit obligation...
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