see attached doc. Can this be competed by sunday?
Question
see attached doc. Can this be competed by sunday?
A company’s defined benefit pension plan had a PBO of $269,000 on January 1, 2016. During 2016, pension benefits paid were $43,000. The discount rate for the plan for this year was 8%. Service cost for 2016 was $89,000. Plan assets (fair value) increased during the year by $51,000. The amount of the PBO at December 31, 2016, was:
$226,000.
$379,520.
$336,520.
None of these answer choices is correct.
Mars Inc. has a defined benefit pension plan. On December 31 (the end of the fiscal year), the company received the PBO report from the actuary. The following information was included in the report: ending PBO, $114,000; benefits paid to retirees, $13,500; interest cost, $8,400. The discount rate applied by the actuary was 10%. What was the beginning PBO?
$100,500.
$105,600.
$108,900.
$84,000.
Data for 2016 were as follows: PBO, January 1, $241,000 and December 31, $272,000; pension plan assets (fair value) January 1, $183,000, and December 31, $235,000. The projected benefit obligation was underfunded at the end of 2016 by:
$58,000.
$37,000.
$31,000.
$52,000.
Scallion Company received the following reports of its defined benefit pension plan for the current calendar year:
PBO
Plan assets
Balance, January 1
$430,000
Balance, January 1
$252,000
Service cost
192,000
Actual return
38,000
Interest cost
39,000
Annual contribution
110,000
Benefits paid
(88,000)
Benefits paid
(88,000)
Balance, December 31
$573,000
Balance, December 31
$312,000
The long-term expected rate of return on plan assets is 10%. Assuming no other data are relevant, what is the pension expense for the year?
$276,000.
$193,000.
$205,800.
$231,000.
The following information is related to the defined benefit pension plan of Dreamworld Company for the year:
Service cost
$68,000
Contributions to pension plan
117,000
Benefits paid to retirees
155,000
Plan assets (fair value), January 1
650,000
Plan assets (fair value), December 31
764,000
Actual return on plan assets
152,000
PBO, January 1
950,000
PBO, December 31
958,000
Discount rate
10%
Long-term expected return on plan assets
9%
Assuming no other relevant data exist, what is the pension expense for the year?
$68,000.
$163,000.
$101,500.
$104,500.
Colombo Enterprises has a defined benefit pension plan. At the end of the reporting year, the following data were available: beginning PBO, $80,000; service cost, $17,500; interest cost, $6,700; benefits paid for the year, $8,000; ending PBO, $96,200; and the expected return on plan assets, $12,000. There were no other pension-related costs. The journal entry to record the annual pension costs will include a debit to pension expense for:
$12,200.
$24,200.
$5,500.
$10,800.
Castillo Company has a defined benefit pension plan. At the end of the reporting year, the following data were available: beginning PBO, $75,000; service cost, $18,000; interest cost, $5,000; benefits paid for the year, $9,000; ending PBO, $89,000; the expected return on plan assets, $10,000; and cash deposited with pension trustee, $17,000. There were no other pension-related costs. The journal entry to record the annual pension costs will include a credit to the PBO for:
$17,000.
$18,000.
$13,000.
$23,000.
The following incomplete (columns have missing amounts) pension spreadsheet is for Old Tucson Corporation (OTC).
($ in millions) debit (credit)
PBO
Plan assets
Prior service cost
Net (Gain) loss
Pension Expenses
Cash
Net Pension (Liability)/ Asset
Beginning Balance
(520)
64
Service cost
68
Interest cost
Expected return on assets
(25)
Gain/loss on assets
(3)
Amortization of:
Prior service cost
(8)
Net gain loss
Loss on PBO
(27)
27
Contribution to funds
(62)
Retiree benefits paid
47
(47)
Ending balance
(598)
300
60
84
(298)
What was the prior service cost at the beginning of the year?
$63
$52
$68
$60
Top of Form
The following incomplete (columns have missing amounts) pension spreadsheet is for Old Tucson Corporation (OTC).
($ in millions) debit (credit)
PBO
Plan assets
Prior service cost
Net (Gain) loss
Pension Expenses
Cash
Net Pension (Liability)/ Asset
Beginning Balance
(540)
70
Service cost
74
Interest cost
Expected return on assets
(27)
Gain/loss on assets
(4.00)
Amortization of:
Prior service cost
(10)
Net gain loss
Loss on PBO
(29)
29
Contribution to funds
(68)
Retiree benefits paid
51
(51)
Ending balance
(621)
312
66
90
(310)
What is OTC’s pension expense for the year?
$80.00
$91.00
$84.00
$16.00
Bottom of Form
Top of Form
The following incomplete (columns have missing amounts) pension spreadsheet is for Old Tucson Corporation (OTC).
($ in millions) debit (credit)
PBO
Plan assets
Prior service cost
Net (Gain) loss
Pension Expenses
Cash
Net Pension (Liability)/ Asset
Beginning Balance
(420)
42
Service cost
38
Interest cost
Expected return on assets
(15)
Gain/loss on assets
(.50)
Amortization of:
Prior service cost
(3)
Net gain loss
Loss on PBO
(17)
17
Contribution to funds
(32)
Retiree benefits paid
27
(27)
Ending balance
(483)
242
38
54
(240)
What was the balance of the net pension asset/liability reported in the balance sheet at the end of the previous year?
Net pension asset of $197.50.
Net pension liability of $197.50.
Net pension liability of $350.00.
Net pension asset of $350.00.
Bottom of Form
ATTACHMENT PREVIEW Download attachment
1.A company’s defined benefit pension plan had a PBO of $269,000 on January 1, 2016.During 2016, pension benefits paid were $43,000. The discount rate for the plan for thisyear was 8%. Service cost for 2016 was $89,000. Plan assets (fair value) increasedduring the year by $51,000. The amount of the PBO at December 31, 2016, was:$226,000.$379,520.$336,520.None of these answer choices is correct.2.Mars Inc. has a defined benefit pension plan. On December 31 (the end of the fiscalyear), the company received the PBO report from the actuary. The following informationwas included in the report: ending PBO, $114,000; benefits paid to retirees, $13,500;interest cost, $8,400. The discount rate applied by the actuary was 10%. What was thebeginning PBO?$100,500.$105,600.$108,900.$84,000.3.Data for 2016 were as follows: PBO, January 1, $241,000 and December 31, $272,000;pension plan assets (fair value) January 1, $183,000, and December 31, $235,000. Theprojected benefit obligation was underfunded at the end of 2016 by:$58,000.$37,000.$31,000.$52,000.
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View the Answer
4.Scallion Company received the following reports of its defined benefit pension plan forthe current calendar year:PBOPlan assetsBalance, January 1$430,000 Balance, January 1$252,000Service cost192,000 Actual return38,000Interest cost39,000 Annual contribution110,000Benefits paid(88,000) Benefits paid(88,000)Balance, December 31$573,000 Balance, December 31$312,000The long-term expected rate of return on plan assets is 10%. Assuming no other data arerelevant, what is the pension expense for the year?$276,000.$193,000.$205,800.$231,000.5.The following information is related to the defined benefit pension plan of DreamworldCompany for the year:Service cost$68,000Contributions to pension plan117,000Benefits paid to retirees155,000Plan assets (fair value), January 1650,000Plan assets (fair value), December 31764,000Actual return on plan assets152,000PBO, January 1950,000PBO, December 31958,000Discount rate10%Long-term expected return on plan assets9%
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