quincyweather.com

Chapter 20

EXERCISE 20-1

(a)Computation of pension price:

Service cost$ 60, 500

Interest cost ($500, 500 X. 10) 50, 1000

Expected go back on strategy assets (15, 000)

Prior service expense amortization almost 8, 000

Pension plan expense intended for 2012$103, 1000

(b)Pension Expense103, 000

Cash90, 000

Pension plan Asset /Liability5, 000

Additional Comprehensive Profits (PSC)8, 000

EXERCISE 20-2

Calculation of monthly pension expense:

Assistance cost$ 80, 000

Interest cost ($700, 000 Back button 10%)70, 000

Expected come back on program assets (64, 000)

Preceding service expense amortization 15, 000

Pension check expense intended for 2012$106, 1000

EXERCISE 20-5

Computation of Service-Years

Year

Sean

Paul

Nancy

Dave

Kathy

Total

2012

1

you

1

you

1

a few

2013

1

1

1

1

1

5

2014

1

1

1

one particular

1

a few

2015

one particular

1

1

1

four

2016

one particular

1

1

3

2017

1

you

2

several

4

your five

6

six

24

Price per service-year: $72, 000 ÷ twenty four = $3, 000

Calculation of Annual Prior Service Cost Amortization

Year

Total Service-Years

Expense Per Service-Year

Annual Demise

2012

your five

$3, 500

$15, 1000

2013

five

3, 500

15, 000

2014

5

3, 000

15, 1000

2015

four

3, 500

12, 000

2016

three or more

3, 000

9, 500

2017

a couple of

3, 000

6, 1000

$72, 500

EXERCISE 20-6 (10–15 minutes)

Computation of Actual Come back on Program Assets

Good value of plan assets at 12/31/12$2, 725, 000

Fair worth of strategy assets for 1/1/12 (2, 400, 000)

Increase in fair value of plan property 325, 000

Deduct: Input to plan during 2012$280, 000

Less benefits paid during 2012 350, 000(70, 000)

Actual return upon plan possessions for 2012$ 395, 000

EXERCISE 20-8

Fermeture and Bare minimum Loss Demise

Year

Projected Benefit Accountability (a)

Prepare

Assets

10% Corridor

Gathered

OCI (G/L) (a)

Minimal Amortization of Loss

2011

$2, 1000, 000

$1, 900, 000

$200, 1000

$ 0

$ 0

2012

two, 400, 500

2, five-hundred, 000

two hundred and fifty, 000

280, 000

several, 000(b)

2013

2, 950, 000

two, 600, 1000

295, 500

367, 000(c)

6, 000(d)

2014

three or more, 600, 000

3, 500, 000

fish hunter 360, 000

372, 000(e)

you, 000(f)

(a)As of the start of the year.

(b)($280, 000 – $250, 000) ÷ a decade = $3, 000

(c) $280, 000 – $3, 000 & $90, 500 = $367, 000

(d)($367, 000 – $295, 000) ÷ more than a decade = $6, 000

(e) $367, 000 – $6, 000 & $11, 1000 = $372, 000

(f)($372, 000 – $360, 000) ÷ more than a decade = $1, 000

WORK OUT 20-9

(a)Note to financial assertions disclosing components of 2012 pension expense:

Be aware X: Net pension expenditure for 2012 consists of the following pieces of pension price:

Service cost$ 94, 000

Interest expense 253, 000

Expected return on program assets (175, 680)

Preceding service price amortization 40, 000

Pension expense$213, 320

(b)Comprehensive income, 2012

Amount of preceding service cost$ (42, 000)

Actuarial loss 45, 680

Other extensive loss$ 3, 680

Extensive income, 2012

Net income$ 35, 1000

Other comprehensive loss      3, 680

Comprehensive income$ 31, 320

EXERCISE 20-9

(c)Accumulated OCI at December 31, 2012 is $255, 680; this amount is definitely comprised of the subsequent:

PSC

Gain/Loss

Balance January. 1, 2012*

$252, 500 Dr .

$ 0

  

Amortization of PSC

42, 000 Cr.

  

Actuarial loss

45, 680 Dr .

Stability Dec. 23, 2012

$210, 000 Dr .

$45, 680 Dr .

*$210, 000 & $42, 1000

EXERCISE 20-11

(a)Pension expense in january 2012 composed of the next:

Service cost$ 56, 500

Interest about projected benefit obligation

(9% Times $900, 000)81, 000

Predicted return upon plan assets (54, 000)

Amortization of prior assistance cost 60, 000

Pension plan expense$133, 500

(b)Pension Expense133, 000

Pension check Asset /Liability 62, 500

Cash145, 500

Other Complete Income (PSC)50, 000

(c)Income Statement

Pension plan expense$133, 000

Comprehensive Income Statement

Net income$ XXXX

Other thorough...

02.08.2019

Related

Essay about Scarcity

02.08.2019 Scarcity is normally misinterpreted and never clearly comprehended, making it vital to realize the factors that will make something hard to find are limited resources can be found, the…..

Starbucks Dissertation

02.08.2019 Starbucks' Strategy and Interior Initiatives to come back to Profitable Development Starbucks began as a basic retail coffee store at the Pikes Place store, exactly where customers traveled…..