An employer maintains pension trust for its employees. The following contributions are made: 2017 2018 2019 Current service costs P800,000 P800,000 P800,000 Past service costs 800,000 500,000 400,000 Determine the total deductible past service costs for 2019.

An employer maintains pension trust for its employees. The following contributions are made: 2017 2018 2019 Current service costs P800,000 P800,000 P800,000 Past service costs 800,000 500,000 400,000 Determine the total deductible past service costs for 2019.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter19: Deferred Compensation

Section: Chapter Questions

Problem 16CE

See similar textbooks

Related questions

Q: Notes Receivable (8%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Service…

Q: Sanfillipo, Incorporated, had 800 units of inventory on hand at March 1 of the current year, costing…

A: FIFO Method :— It is one of the methods of inventory valuation in which it is assumed that old…

Q: Some of the information found on a detail inventory card for Marin Inc. for the first month of…

A: INVENTORY VALUATION Inventory Valuation Methods are methods of valuation of inventory. Inventory…

Q: The FASB has carefully avoided the issue of discounting deferred taxes. SFAS No.109, “Accounting for…

A: Deferred taxes are a concept in accounting that's kind of like dealing with the way taxes show up on…

Q: ! Required information [The following information applies to the questions displayed below.] Haven…

A: The term "tax benefit" generally refers to any tax law that provides you with an opportunity to…

Q: Using the adjusted trial provided below, prepare an income statement, statement of owner's equity,…

A: Income statement in the business shows all incomes and all expenses of the business and at the end,…

Q: What is the net effect of the EIP (economic impact payment) and RRC (recovery rebate credit) on each…

A: The Economic Impact Payment (EIP) Recovery Rebate Credit (RRC) is a mechanism in the U.S. tax code…

Q: ABC Ltd's financial year ends on 31 Dec. The company uses the straight-line depreciation method. The…

A: Property, plant, and equipment refers to those assets which are long-term in nature and are used by…

Q: Suppose you buy a round lot of Francesca Industries stock (100 shares) on 50 percent margin when the…

A: To calculate the rate of return on your investment in Francesca Industries stock, we need to…

Q: Prepare the journal entries required to record the above transactions on the books of Cheyenne Ltd.…

A: A basic accounting record known as a journal entry is used to track and record financial…

Q: Required Information On January 1, 2021, the general ledger of Dynamite Fireworks Includes the…

A: An income statement is a financial report that indicates the revenue and expenses of a business. It…

Q: Section 6 Corporation’s Share Issuance Journal Entries Sheryl Inc. is authorized to issue 70,000,…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: Fischer fabrication reported the following information concerning its direct materials: direct…

A: It is the difference between the actual cost of raw materials used in production and the budgeted…

Q: On September 30, 2016, a corporation sold to a bank, a customer's 18 percent, 60-day note, dated…

A: The note receivables received by an entity entitles that entity to receive the amount stated in that…

Q: Required: A schedule showing employee earnings, unit labor cost, unit over- head cost, and…

A: A 100% bonus plan is the plan which is used by the company in which the employees or the workers get…

Q: A. A VAT registered person had the following transactions during the third quarter 2018: a. Cash…

A: VAT (Value Added Tax) payable refers to the amount of tax that a business owes to the government…

Q: Berry Farm produces organic tomatoes and strawberries. In June 2024, it transported 125 boxes of…

A: As per IAS 115,Revenue Recognition, 5th condition for Revenue recognization is to recognize revenue…

Q: The following table is used to lookup information on a specific product. The Product ID is entered…

A: The LOOKUP function is a feature in Excel software that allows users to search for a specific value…

Q: which of the following statements is true? a. Segment margin is greater than contribution margin.…

A: Hi studentSince there are multiple questions, we will answer only first questionSegmented income…

Q: Vaughn cb. sells product P-14 at a price of $48 a unit. The per-unit cost data are direct materials…

A: The Special order should be accepted if Incremental Income is greater than incremental costs.…

Q: a. Determine the unit cost for each job using a traditional plantwide overhead rate based on direct…

A: ACTIVITY BASED COSTING Activity Based Costing is a Powerful tool for measuring…

Q: HELP WITH CORRECT ANSWER AND WORKING Schedule of Activity CostsQuality Control…

A: Activity cost refers to the total cost that is incurred for the entire production process and the…

Q: Malay, Inc., a Philippine company, acquired 100 percent common stock of an Indian company on January…

A: When two businesses, frequently of similar size, decide to merge rather than continue to be owned…

Q: The adjusted trial balance for China Tea Company at December 31, 2024, is presented below: Debit…

A: Income statement is the one which is prepared by the entity for the purpose of determining the gross…

Q: Prepare the statement of cash flows

A: An organization's cash inflows and expenditures over a certain time are thoroughly summarized in the…

Q: How can a company balance the interests of its various stakeholders when making strategic decisions?

A: Strategic decisions are important selections made by businesses or individuals that have a major…

Q: Shetland Corporation, a C corporation, has E&P of $1,000,000. The corporation stock is held as…

A: Matthew is shareholder of Shetland Corporation holding 1,000 shares of the company and is going to…

Q: CLV3: A new streaming platform, MV expects to make a margin of $10 every month from each of its…

A: It is a measure to determine the margin or profit that can be generated from a customer throughout…

Q: Magnolia Corp. granted a loan to a borrower on January 1, 2023. The interest on the loan is 12%…

A: In a note payable, one party (the maker) promises to pay a specific amount of money to another party…

Q: Problem 11-49 Complete Analysis of Cost Variances; Review of Chapters 10 and 11 (LO 11-5) Chillco…

A: The difference between planned or budgeted values and actual results is examined using the technique…

Q: Question 3 Pak Ali Western produces a single product of frozen lamb chop and the following forecast…

A: Break even point is a sales volume at which there is no profit no loss.Break even point (in units) =…

Q: 1. A partnership has four equal partners who share profits and losses in accordance with their…

A: There are multiple sub-parts and only the first three sub-parts are solved due to our…

Q: Based on the above information, give the total variable cost for each unit. Complete the profit…

A: Marginal Cost: Marginal cost refers to the additional cost incurred when producing one more unit of…

Q: Journal entry worksheet < 2 Record amortization of the goodwill (an intangible asset with an…

A: In an acquisition, goodwill is an intangible asset that reflects the difference between the purchase…

Q: Additional information: A. The personal assets (excluding partnership capital and loan interests)…

A: Liquidation is the process of bringing the business to an end by distributing the assets that are…

Q: Bhatti Company produces plastic photo frames. Two departments, molding and finishing, are involved…

A: According to the question given, we need to prepare the production cost report for both departments.…

Q: Required: (1) A labor performance report for September to be sent to the plant manager. For control…

A: A performance report about the labour or on any activity is based on the fact of actual truth and…

Q: Following is the receipt and payment of Minarwa Club, for the year ended on 30th June Rs. Receipts…

A: Answer:- Income and expenditure account:- An income and expenditure account is basically a thorough…

Q: On January 1, 2020, Bacarra Company leased an asset for a term of six years. Annual rentals of…

A: The appropriate recording and presentation of lease transactions in the financial accounts of both…

Q: Hamilton, Inc. produces chemicals for large biotech companies. If has the following data for…

A: For a business the management prepares a budget for a future period to operate its production or…

Q: A manufacturing company incurs depreciation costs of $6,000 per month on manufacturing machinery.…

A: The Depreciation expense is charged on fixed assets as reduction in the value of the fixed assets…

Q: 4. Poppy Company manufactures and sells a single product called a Ret. Operating at capacity, the…

A: For making special order decisions that whether special order should be accepted or not, incremental…

Q: A business sells real property for $950,000, with $600,000 of this amount being allocated to the…

A: A capital asset generates a gain when it is sold or otherwise disposed of for more money than it…

Q: ABC Imports, Inc. is a distribution of premium Italian wines. The firm’s balance sheet for July 31,…

A: Hi studentSince there are multiple subparts asked, we will answer only first three subparts.Cash…

Q: Problem 2-2 (IAA) Sensible Company provided the following ledger account of the cash in bank…

A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…

Q: Assume a company makes only three products, A, B, and C: Product A Product B Product C Estimated…

A: LIMITING FACTOR Contribution margin is difference between selling price and variable cost.Limiting…

Q: During the current year, USACO (a domestic corporation) sold equipment to FrenchCo, a non-U.S.…

A: Sourcing of income refers to determining the country or jurisdiction where income is considered to…

Q: ccounting in about 300 words.

A: Lets understand the basics.Cost accounting and financial accounting are the two different type of…

Q: The following information is available for Sheridan Corporation's pension plan for the year 2023:…

A: The pension plan is the retirement plan for the employees, The employer contributes funds to the…

Q: 9 Plans Company uses the retail inventory method. The following information is available for the…

A: "Since you have asked multiple questions, the first question was answered for you. If you want the…

Question

An employer maintains pension trust for its employees. The following contributions are
made:
2017 2018 2019
Current service costs P800,000 P800,000 P800,000
Past service costs 800,000 500,000 400,000

Determine the total deductible past service costs for 2019.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Define past service costs

VIEW

Step 2: Calculation of total deductible past service for 2019

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

In 2019, Magenta Corporation paid compensation of 45,300 to the participants in a profit sharing plan. During 2019, Magenta Corporation contributed 13,200 to the plan. a. Calculate Magentas deductible amount for 2019. b. Calculate the amount of any contribution carryover from 2019.
During 2019, Carl (a single taxpayer) has a salary of $91,500 and interest income of $11,000. Calculate the maximum contribution Carl is allowed for an educational savings account. $0 $400 $1,000 $2,000 Some other amount
An employer maintains pension trust for its employees. The following information are made: Description 2018 2019 2020 Current service costs 1,500,000 1,700,000 2,000,000 Past service costs 800,000 600,000 How much is the deductible pension contributions for the year 2020?
A private employee had the following remuneration in 2019: Gross salaries, net of P11,000 mandatory contribution P314,000 12,000 24,000 28,000 5,000 8,000 Fixed RATA COLA 13th month pay Christmas gift Laundry allowance (P500/month) What is the taxable compensation income?
rane importers provides the following pension plan Fair value of pension plan assets, January 1, 2025 Fair value of pension plan assets, December 31, 2025 Contributions to the plan in 2025 Benefits paid retirees in 2025 Tormation. Actual return on plan assets for 2025 $ $2,575,000 2,914,000 299,000 366,000 From the data above, compute the actual return on the plan assets for 2025.
The following are made available for the defined benefit pension plan of Pores Corporation as of December 31, 2019: Fair value of Plan asset, Jan 1 Total actual return on plan asset Payment made to retirees Payment of pension benefit settled on active employees Contribution during the year P3,000,000 ? 600,000 400,000 500,000 6% Discount rate a. What is the fair value of plan asset as of December 31, 2019? b. What amount of the total actual return on plan asset should be included in profit or loss? c. What amount of the total actual return on plan asset should be reported in other comprehensive income?
The following information pertains to a defined benefit pension plan that Arora Inc. sponsors in 2020. PBO balance, January 1, 2020 $160,000 Service cost 19,000 Interest cost 11,200 Prior service cost adjustment based on past service, January 1, 2020 30,000 Amortization of prior service cost 3,000 Actuarial gain on PBO 6,000 Benefits paid to retirees 2,500 Contributions to plan 18,000 What is the PBO balance on December 31, 2020? Select one: a. $228,700 b. $216,700 c. $211,700 d. $193,700
Crane Syrups Company provides the following pension plan information: Fair value of pension plan assets, January 1, 2025 Fair value of pension plan assets, December 31, 2025 Contributions to the plan in 2025 Benefits paid retirees in 2025 $1,215,000 1,424,000 157,000 204,000 From the data above, compute the actual return on the plan assets for 2025. Actual return on plan assets for 2025 $
Mayumi, a rank and file, reports the following for the year 2021: Compensation, net of P77,000 mandatory contributions P300,000 Supplemental compensation 35,000 13th month pay and ôther benefits 50,000 De minimis benefits within the ceiling amounts 20,000 De minimis benefits in excess of the ceiling amounts 6,000 Fixed transportation and communication allowance 45,000 How much is the taxable compensation income?
On December 31, 2020, an entity paid P200,000 contribution to a defined contribution plan. Of this amount, P150,000 is in part exchange for services performed by the employees in December 2019, and the balance of P50,000 is in respect of services to be performed in 2020.The contribution to the defined contribution plan is recorded on December 31, 2019 with a: a. Some other answer. b. Debit to :Employee benefit expense for P150,000 c. Debit to Prepaid benefit expense P50,000 d. Credit to Cash for P100,000
Manno Corporation has the following information available concerning its defined-benefit pension plan for 2020. Service cost Contributions Interest cost Actual return on plan assets Expected return on plan assets Prior service cost amortization Benefits paid Compute Manno's 2020 pension expense. $40,000 50,000 47,400 25,000 26,900 35,000 100,000
The actuary for the pension plan of Carla Vista Company calculated the following net gains and losses: Incurred during the Year (Gain) or Loss 2025 $(634,000) 2026 250,000 2027 1,020,000 2028 393,000 Other information about the company's pension obligation and plan assets is as follows: Projected Benefit As of January 1 Obligation Plan Assets (market-related asset value) 2025 $3,957,000 $3,563,000 2026 4,608,000 3,543,000 2027 4,690,000 3,729,000 2028 5,257,000 4,386,000 Carla Vista Company has a stable labor force of 250 employees who are expected to receive benefits under the plan. The total service- years for all participating employees are 2,750. The beginning balance of Accumulated OCI (G/L) is zero on January 1, 2025. The market-related value and the fair value of plan assets are the same for the 4-year period. Use the average remaining service life per employee as the basis for amortization. Compute the minimum amount of Accumulated OCI (G/L) amortized as a component of net…