The Kollar Company has a defined benefit pension plan. Pensioninformation concerning the fiscal years 2013 and 2014 are presentedbelow ($ in millions):
Information Provided by PensionPlan Actuary:
a. Projected benefit obligation asof December 31, 2012 = $2,000.
b.
Prior service cost from plan amendment on January 2, 2013 = $600(straight-line amortization for 10-year average remaining serviceperiod).
c. Service cost for 2013 =$560.
d. Service cost for 2014 =$610.
e. Discount rate used by actuary onprojected benefit obligation for 2013 and 2014 = 10%.
f. Payments to retirees in 2013 =$420.
g. Payments to retirees in 2014 =$490.
h. No changes in actuarialassumptions or estimates.
i. Net gainâAOCI on January 1, 2013= $250.
j. Net gains and losses areamortized for 10 years in 2013 and 2014.
Information Provided by PensionFund Trustee:
a. Plan asset balance at fair valueon January 1, 2013 = $1,500.
b. 2013 contributions = $580.
c. 2014 contributions = $630.
d. Expected long-term rate ofreturn on plan assets = 12%.
e. 2013 actual return on planassets = $130.
f. 2014 actual return on planassets = $180.
Required:
1.
Calculate pension expense for 2013 and 2014. (Enter youranswers in millions rounded to 1 decimal place (i. e., 5,500,000should be entered as 5.5).)
2.
Prepare the journal entries for 2013 and 2014 to record pensionexpense. (If no entry is required for a particulartransaction, select "No journal entry required" in the firstaccount field. Enter your answers in millions rounded to 1 decimalplace (i. e., 5,500,000 should be entered as 5.5).)
3.
Prepare the journal entries for 2013 and 2014 to record anygains and losses and new prior service cost.(If no entry isrequired for a particular transaction, select "Nojournal entry required" in the first account field. Enter youranswers in millions rounded to 1 decimal place (i. e., 5,500,000should be entered as 5.5).)
4.
Prepare the journal entries for 2013 and 2014 to record the cashcontribution to plan assets and benefit payments to retirees.(If no entry is required for a particulartransaction, select "No journal entry required" in the firstaccount field. Enter your answers in millions.(i. e., 10,000,000 should be entered as 10).)
Answers: 3
Another question on Business
Business, 21.06.2019 15:30
Which of the following statements accurately describes how costs and benefits are calculated?
Answers: 3
Business, 22.06.2019 00:00
Alandlord rented an art studio to an artist. under the terms of the signed, written, two-year lease, the artist agreed to pay the landlord $1,000 per month and to assume responsibility for all necessary repairs. after the first year of the lease, the artist assigned the balance of his lease to a sculptor. the landlord approved the sculptor as a tenant and accepted two rent payments from her, and then the landlord sold the building to an investor. the sculptor had made two payments to the investor when an electrical fire broke out in the studio, injuring the sculptor. the fire was caused by faulty wiring. the landlord was aware that there was a dangerous wiring problem when he leased the property to the artist. but when the landlord discovered how costly repairs would be, he decided it would be more profitable to sell the property than to repair it. the problem was not easily discoverable by anyone other than an expert electrician, and the landlord did not tell the artist, the sculptor, or the investor about the problem. the sculptor sues to recover damages for her injuries. from whom can the sculptor recover?
Answers: 3
Business, 22.06.2019 12:10
Laws corporation is considering the purchase of a machine costing $16,000. estimated cash savings from using the new machine are $4,120 per year. the machine will have no salvage value at the end of its useful life of six years and the required rate of return for laws corporation is 12%. the machine's internal rate of return is closest to (ignore income taxes) (a) 12% (b) 14% (c) 16% (d) 18%
Answers: 1
Business, 22.06.2019 14:30
What’s the present value of a perpetuity that pays $250 per year if the appropriate interest rate is 5%? $4,750 $5,000 $5,250 $5,513 $5,788what is the present value of the following cash flow stream at a rate of 8.0%, rounded to the nearest dollar? cash flows: today (t = 0) it is $750, after one year (t = 1) it is $2,450, at t = 2 it is $3,175, and at t=3 it is $4,400. draw a time line. $7,917 $8,333 $8,772 $9,233 $9,695
Answers: 2
You know the right answer?
The Kollar Company has a defined benefit pension plan. Pensioninformation concerning the fiscal year...
Questions
English, 16.09.2021 03:20
Chemistry, 16.09.2021 03:20
Mathematics, 16.09.2021 03:20
Mathematics, 16.09.2021 03:20
Mathematics, 16.09.2021 03:20
Mathematics, 16.09.2021 03:20
Mathematics, 16.09.2021 03:20
History, 16.09.2021 03:20
Mathematics, 16.09.2021 03:20
Arts, 16.09.2021 03:20
English, 16.09.2021 03:20
Mathematics, 16.09.2021 03:20
Mathematics, 16.09.2021 03:20
