69 the following information is provided regarding a company 39 s pension plan servi 4313598

69 the following information is provided regarding a company 39 s pension plan servi 4313598

69.The following information is provided regarding a company's pension plan:

Service cost

$ 640,000

Projected benefit obligation, Jan. 1

4,500,000

Fair value plan assets, Jan. 1

3,750,000

Amortization of unrecognized prior service cost for the year

250,000

Interest cost

8%

Employer contribution to fund

845,000

Expected (and actual) return on plan assets

10%

 

Required:

a.

Prepare the December 31 journal entry to record pension expense.

b.

Explain the difference between “interest cost” and the “expected return on plan assets.”

70.Teresa Company had the following information related to its pension plan:

   Beginning of

2016

2017

2018

Projected benefit obligation

$6,000

$7,990

$9,200

Plan assets

8,400

10,300

8,800

Net loss reported by actuary

1,990

For simplicity, an average remaining service lifeof 3 years is always used.
An additional net loss of $1,990 was reported as of January 1, 2017 (see table). This amount has been included in the January 1, 2017, projected benefit obligation balance.
Required:
Compute the amount of loss that should be included in pension expense in:

a.

2017

b.

2018

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