Question

9. A company’s annual pension expense calculation for its defined-benefit plan includes: A) the cost of...

9. A company’s annual pension expense calculation for its defined-benefit plan includes: A) the cost of employees’ service for years prior to their being employed by the company. B) the cost of employees’ service performed during the year. C) a deduction for the cash that the company actually sets aside to fund the plan. D) All of the above are true. E) None of the above is true.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Option D) All of the above are true is the correct option

Defined benefit plan:

- It is a specific retirement benefit plan through which the employee gets a guaranteed retirement benefit from the employer.

- Employees' control over the plan is very little. Responsibility of investing and distribution tied to the employer.

Pension expense components:

(+) Service Costs

(+) Interest on Liability

(-) Estimated Return on Plan Assets

(+) Amortization of Unamortized Prior Service Costs

(+/-) Gain or Loss

(+) Pension Expense

(-) Cash Payments

(+/-) Other Comprehensive Income/ Loss

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Hana Company’s defined-benefit pension plan covers 180 employees. In its negotiations with the employees, Zarle Company...
Hana Company’s defined-benefit pension plan covers 180 employees. In its negotiations with the employees, Zarle Company amends its pension plan on January 1, 2014, and grants SR 94,000 of prior service costs to its employees. The employees are grouped according to expected years of retirement, as shown below. Group Number of Employees Expected Retirement on December 31, I 30 2014 II 50 2015 III 60 2016 IV 40 2017 Total 180 1. Compute per year service years and the total...
Q.3. Hana Company’s defined-benefit pension plan covers 180 employees. In its negotiations with the employees, Zarle...
Q.3. Hana Company’s defined-benefit pension plan covers 180 employees. In its negotiations with the employees, Zarle Company amends its pension plan on January 1, 2014, and grants SR 94,000 of prior service costs to its employees. The employees are grouped according to expected years of retirement, as shown below. Group Number of Employees Expected Retirement on December 31, I 30 2014 II 50 2015 III 60 2016 IV 40 2017 Total 180 1. Compute per year service years and the...
Marin Company sponsors a defined benefit pension plan. The following information related to the pension plan...
Marin Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2020 and 2021. 2020 2021 Plan assets (fair value), December 31 $754,920 $916,920 Projected benefit obligation, January 1 756,000 864,000 Pension asset/liability, January 1 151,200 Cr. ? Prior service cost, January 1 270,000 259,200 Service cost 64,800 97,200 Actual and expected return on plan assets 25,920 32,400 Amortization of prior service cost 10,800 12,960 Contributions (funding) 124,200 129,600 Accumulated benefit obligation,...
pension expense, journal entries for 2 yearrs. biker company sponsors a defined benefit pension plan. the...
pension expense, journal entries for 2 yearrs. biker company sponsors a defined benefit pension plan. the following information related to the pension plan is available for 2017 and 2018. 2017 2018 plan assets (fair value) December 31 396,000 462,000 projected benefit obligation, January 1 400,000 500,000 pension asset/liability , January 1 60,000 cr ? prior service cost, Jan 1 300,000 260,000 service cost 30,000 42,000 actual and expected return on plan assets 26,000 32,000 amortization of prior service cost 40,000...
Brownie Company sponsors a defined benefit pension plan for its employees. On January1, 2020, the following...
Brownie Company sponsors a defined benefit pension plan for its employees. On January1, 2020, the following balances relate to this plan. Plan assets $786,000 Projected benefit obligation 897,000 Pension asset/liability 111,000 Cr. Accumulated OCI (PSC) 92,000 Dr. As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost $91,000 Settlement rate, 6% Actual return on plan assets 49,000 Amortization of prior service cost 31,000 Expected return on plan assets...
Coronado Company sponsors a defined benefit pension plan. The following information related to the pension plan...
Coronado Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2020 and 2021. 2020 2021 Plan assets (fair value), December 31 $733,950 $891,450 Projected benefit obligation, January 1 735,000 840,000 Pension asset/liability, January 1 147,000 Cr. ? Prior service cost, January 1 262,500 252,000 Service cost 63,000 94,500 Actual and expected return on plan assets 25,200 31,500 Amortization of prior service cost 10,500 12,600 Contributions (funding) 120,750 126,000 Accumulated benefit obligation,...
Crane Company sponsors a defined benefit pension plan for its employees. The following data relate to...
Crane Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2020 in which no benefits were paid. 1. The actuarial present value of future benefits earned by employees for services rendered in 2020 amounted to $56,000. 2. The company’s funding policy requires a contribution to the pension trustee amounting to $145,023 for 2020. 3. As of January 1, 2020, the company had a projected benefit obligation...
Jasper Company has a defined benefit pension plan. Effective at the beginning of the current year,...
Jasper Company has a defined benefit pension plan. Effective at the beginning of the current year, The company retroactively amended its pension plan to increase the pension formula's salary percentage. which of the following statements are correct? A) The increase in the PBO attributable to applying the more generous terms of the amendment to prior service years is the prior service cost. B) The prior service cost is the difference between the PBO at the end of the previous year...
Question: Amherst City provides a defined benefit pension plan for employees of the city electric utility,...
Question: Amherst City provides a defined benefit pension plan for employees of the city electric utility, an enterprise fund. Assume that the projected level of earnings on plan investments is $196,000, the service cost component is $255,000, and interest on the pension liability is $163,000 for the year. Actual returns on plan assets for the year were $179,000, and the City is amortizing a deferred outflow resulting from a change in plan assumptions from a prior year in the amount...
Bonita Company sponsors a defined benefit pension plan for its employees. The following data relate to...
Bonita Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2020 in which no benefits were paid. 1. The actuarial present value of future benefits earned by employees for services rendered in 2020 amounted to $56,300. 2. The company’s funding policy requires a contribution to the pension trustee amounting to $136,404 for 2020. 3. As of January 1, 2020, the company had a projected benefit obligation...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT