a. Computation of amount of net gain-AOCI amortization in 2018:- | ($ in miilions) | ||
a. Net Gain-AOCI at 01-01-2018 | $ 40 | ||
Projected Benefit Obligation as on 01-01-2018 | $ 240 | ||
Plan Assets as on 01-01-2018 | $ 250 | ||
Higher value | $ 250 | ||
b. Corridor =10% of $250 | $ 25 | ||
c. Excess at the beginning of the year (a-b) | $ 15 | ||
d. Average remaining service period | 15 years | ||
e. Gain amortized to 2018 pension expense (c/d) | $ 1.00 | ||
Feel free to ask any clarification, if required. Kindly
provide feedback by thumbs up, if satisfied. It will be highly
appreciated.
Thank you.
Problem 1: Comprehensive exercise on defined benefit pension plans (46 pts). Orpheum Productions has a defined bene...
Please help with parts B, C (especially this one), and D. Thank you. Orpheum Productions has a defined benefit pension plan. ON December 31, 2018 (the end of Orpheum's fiscal year), the following pension-related data were available: Problem 1: Comprehensive exercise on defined benefit pension plans (46 pts). Orpheum Productions has a defined benefit pension plan. On December 31, 2018 (the end of Orpheum's fiscal year), the following pension-related data were available: ($ in millions) $240 41 12 (20) $268....
Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2021 (the end of Beale's fiscal year), the following pension-related data were available: Projected Benefit Obligation ($ in millions) Balance, January 1, 2021 $ 780 Service cost 80 Interest cost, discount rate, 5% 39 Gain due to changes in actuarial assumptions in 2021 (23 ) Pension benefits paid (39 ) Balance, December 31, 2021 $ 837 Plan Assets ($ in millions) Balance, January 1, 2021 $ 820 Actual...
Beale Management has a noncontributory, defined benefit penslon plan. On December 31, 2018 (the end of Beale's fiscal year), the following penslon-related data were avallable: Projected Benefit obligation Balance, January 1, 2818 (S in millions) $ 740 Service cost 76 Interest cost, discount rate, 5 % 37 Gain due to changes in actuarial assumptions in 2018 Pension benefits paid (21) (37) $ 795 Balance, December 31, 2018 ($ in millions) Plan Assets Balance, January 1, 2818 Actual return on plan...
On December 31, 2018, the following pension-related data were available for CPS Industries' noncontributory, defined benefit pension plan: Projected Benefit Obligation ($ in millions) Balance, January 1, 2018 $960 Service cost 164 Interest cost, discount rate, 5% 48 Gain due to changes in actuarial assumptions in 2018 (20) Pension benefits paid (80) Balance, December 31, 2018 $1,072 Plan Assets Balance, January 1, 2018 $1,000 Actual return on plan assets 80 (Expected return on plan assets, $90) Cash contributions 140 Pension...
Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2018 (the end of Beale's fiscal year), the following pension-related data were available: Projected Benefit obligation Balance, January 1, 2018 Service cost Interest cost, discount rate, 54 Gain due to changes in actuarial assumptions in 2018 Pension benefits paid Balance, December 31, 2018 (in millions) $ 540 56 (11) (27) $ 585 ($in millions) $ 560 Plan Assets Balance, January 1, 2018 retual return on plan assets (Expected...
Turner Inc. provides a defined benefit pension plan to its employees. The company has 150 employees. The remaining amortization period at December 31, 2016, for prior service cost is 5 years. The average remaining service life of employees is 11 years at January 1, 2017, and 10 years at December 31, 2017. The AOCI—net actuarial (gain) loss was zero at December 31, 2016. Turner smooths recognition of its gains and losses when computing its market-related value to compute expected return....
American Metals, Inc. has a defined benefit pension plan. Characteristics of the plan during 2018 follow (in $-millions): PBO balance, January 1 480 Plan assets balance, January 1 300 Service cost 75 Interest cost 45 Gain from change in actuarial assumption 22 Benefits paid (36) Actual return on plan assets 20 2018 contributions 60 The expected long-term rate of return on plan assets was 8%. There were no AOCI balances related to pensions on January 1, 2018, but at the...
7. Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2018, Abbott received the following information: Projected Benefit Obligation ($ in millions) Balance, January $100 Service cost 21 Interest cost 10 Benefits paid (10) Balance, December 31 $121 Plan Assets Balance, January 1 $ 80 Actual, return on plan assets 10 Contributions 2018 21 Benefits paid (10) Balance, December 31 $101 The expected long-term rate of return on plan...
Carolina Consulting Company has a defined benefit pension plan. The following pension-related data were available for the current calendar year: $241,000 42,000 12,050 (5,100) (21,000) $268,950 PBO: Balance, Jan. 1 Service cost Interest cost (5% discount rate) Gain from changes in actuarial assumptions in 2021 Benefits paid to retirees Balance, Dec. 31 Plan assets: Balance, Jan. 1 Actual return (expected return was $22,600) Contributions Benefits paid Balance, Dec. 31 ABO, Dec. 31 January 1, 2021, balances: Prior service cost-AOCI (amortization...
Electronic Distribution has a defined benefit pension plan. Characteristics of the plan during 2018 are as follows: ($ millions) PBO balance, January 1 $ 500 Plan assets balance, January 1 450 Service cost 85 Interest cost 55 Gain from change in actuarial assumption 30 Benefits paid (40) Actual return on plan assets 20 Contributions 2018 75 The expected long-term rate of return on plan assets was 6%. There were no AOCI balances related to pensions on January 1, 2018, but...