Pharoah Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets. Projected Plan Benefit Assets Obligation Value 2019 $2,320,000 $2,204,000 2020 2,784,000 2,900,000 2021 3,422,000 3,016,000 2022 4,176,000 3,480,000 The average remaining service life per employee in 2019 and 2020 is 10 years and in 2021 and 2022 is 12 years. The net gain or loss that occurred during each year is as follows: 2019, $324,800 loss; 2020, $104,400 loss; 2021, $12,760 loss; and 2022, $29,000 gain. (In working the solution, the gains and losses must be aggregated to arrive at year-end balances.) Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the four years, setting up an appropriate schedule. Year Minimum Amortization of Loss 2019 24 2020 24 2021 2$ 2022 24

Pharoah Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets. Projected Plan Benefit Assets Obligation Value 2019 $2,320,000 $2,204,000 2020 2,784,000 2,900,000 2021 3,422,000 3,016,000 2022 4,176,000 3,480,000 The average remaining service life per employee in 2019 and 2020 is 10 years and in 2021 and 2022 is 12 years. The net gain or loss that occurred during each year is as follows: 2019, $324,800 loss; 2020, $104,400 loss; 2021, $12,760 loss; and 2022, $29,000 gain. (In working the solution, the gains and losses must be aggregated to arrive at year-end balances.) Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the four years, setting up an appropriate schedule. Year Minimum Amortization of Loss 2019 24 2020 24 2021 2$ 2022 24

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 6MC

See similar textbooks

Similar questions

lounder Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets. ProjectedBenefitObligation PlanAssetsValue 2019 $2,140,000 $2,033,000 2020 2,568,000 2,675,000 2021 3,156,500 2,782,000 2022 3,852,000 3,210,000 The average remaining service life per employee in 2019 and 2020 is 10 years and in 2021 and 2022 is 12 years. The net gain or loss that occurred during each year is as follows: 2019, $299,600 loss; 2020, $96,300 loss; 2021, $11,770 loss; and 2022, $26,750 gain. (In working the solution, the gains and losses must be aggregated to arrive at year-end balances.)Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the four years, setting up an appropriate schedule.
Flounder Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets. ProjectedBenefitObligation PlanAssetsValue 2019 $2,140,000 $2,033,000 2020 2,568,000 2,675,000 2021 3,156,500 2,782,000 2022 3,852,000 3,210,000 The average remaining service life per employee in 2019 and 2020 is 10 years and in 2021 and 2022 is 12 years. The net gain or loss that occurred during each year is as follows: 2019, $299,600 loss; 2020, $96,300 loss; 2021, $11,770 loss; and 2022, $26,750 gain. (In working the solution, the gains and losses must be aggregated to arrive at year-end balances.)Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the four years, setting up an appropriate schedule.
Pharoah Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets. ProjectedBenefitObligation PlanAssetsValue 2019 $2,340,000 $2,223,000 2020 2,808,000 2,925,000 2021 3,451,500 3,042,000 2022 4,212,000 3,510,000 The average remaining service life per employee in 2019 and 2020 is 10 years and in 2021 and 2022 is 12 years. The net gain or loss that occurred during each year is as follows: 2019, $327,600 loss; 2020, $105,300 loss; 2021, $12,870 loss; and 2022, $29,250 gain. (In working the solution, the gains and losses must be aggregated to arrive at year-end balances.)Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the four years, setting up an appropriate schedule.
Sandhill Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets. ProjectedBenefitObligation PlanAssetsValue 2019 $2,420,000 $2,299,000 2020 2,904,000 3,025,000 2021 3,569,500 3,146,000 2022 4,356,000 3,630,000 The average remaining service life per employee in 2019 and 2020 is 10 years and in 2021 and 2022 is 12 years. The net gain or loss that occurred during each year is as follows: 2019, $338,800 loss; 2020, $108,900 loss; 2021, $13,310 loss; and 2022, $30,250 gain. (In working the solution, the gains and losses must be aggregated to arrive at year-end balances.)Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the four years, setting up an appropriate schedule. Year Minimum Amortization of Loss 2019 2020 2021 2022
Bridgeport Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets. ProjectedBenefitObligation PlanAssetsValue 2019 $2,480,000 $2,356,000 2020 2,976,000 3,100,000 2021 3,658,000 3,224,000 2022 4,464,000 3,720,000 The average remaining service life per employee in 2019 and 2020 is 10 years and in 2021 and 2022 is 12 years. The net gain or loss that occurred during each year is as follows: 2019, $347,200 loss; 2020, $111,600 loss; 2021, $13,640 loss; and 2022, $31,000 gain. (In working the solution, the gains and losses must be aggregated to arrive at year-end balances.)Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the four years, setting up an appropriate schedule. Year Minimum Amortization of Loss 2019 $enter a dollar amount 2020 $enter a…
Crane Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets. Projected Plan Benefit Assets Obligation Value 2024 $2,040,000 $1,938,000 2025 2,448,000 2,550,000 2026 3,009,000 2,652,000 2027 3,672,000 3,060,000 The average remaining service life per employee in 2024 and 2025 is 10 years; and in 2026 and 2027, is 12 years. The net gain or loss that occurred during each year is as follows: 2024, $285,600 loss; 2025, $91,800 loss; 2026, $11,220 loss; and 2027, $25,500 gain. (In working the solution, the gains and losses must be aggregated to arrive at year-end balances.) Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the four years, setting up an appropriate schedule. (Do not leave any answer field blank. Enter O for amounts.)
Whispering Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets. ProjectedBenefitObligation PlanAssetsValue 2019 $2,380,000 $2,261,000 2020 2,856,000 2,975,000 2021 3,510,500 3,094,000 2022 4,284,000 3,570,000 The average remaining service life per employee in 2019 and 2020 is 10 years and in 2021 and 2022 is 12 years. The net gain or loss that occurred during each year is as follows: 2019, $333,200 loss; 2020, $107,100 loss; 2021, $13,090 loss; and 2022, $29,750 gain. (In working the solution, the gains and losses must be aggregated to arrive at year-end balances.)Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the four years, setting up an appropriate schedule. Year Minimum Amortization of Loss 2019 $enter a dollar amount 2020 $enter a…
Kenseth Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets. ProjectedBenefitObligation PlanAssetsValue 2019 $2,000,000 $1,900,000 2020 2,400,000 2,500,000 2021 2,950,000 2,600,000 2022 3,600,000 3,000,000 The average remaining service life per employee in 2019 and 2020 is 10 years and in 2021 and 2022 is 12 years. The net gain or loss that occurred during each year is as follows: 2019, $280,000 loss; 2020, $90,000 loss; 2021, $11,000 loss; and 2022, $25,000 gain. (In working the solution, the gains and losses must be aggregated to arrive at year-end balances.) Instructions Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the four years, setting up an appropriate schedule.
11. Cullumber Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets. ProjectedBenefitObligation PlanAssetsValue 2019 $2,040,000 $1,938,000 2020 2,448,000 2,550,000 2021 3,009,000 2,652,000 2022 3,672,000 3,060,000 The average remaining service life per employee in 2019 and 2020 is 10 years and in 2021 and 2022 is 12 years. The net gain or loss that occurred during each year is as follows: 2019, $285,600 loss; 2020, $91,800 loss; 2021, $11,220 loss; and 2022, $25,500 gain. (In working the solution, the gains and losses must be aggregated to arrive at year-end balances.)Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the four years, setting up an appropriate schedule. Year Minimum Amortization of Loss 2019 $enter a dollar amount 2020 $enter a…
Presented below is pension information for Pharoah Company for the year 2026: Actual return on plan assets Interest on vested benefits Service cost Interest on projected benefit obligation Amortization of prior service cost due to increase in benefits $76000 O $355000. O $203000. O $279000. O $192000. 49000 154000 67000 58000 If the actual return equals the expected return on plan assets, the amount of pension expense to be reported for 2026 is
The following information relates to the pension plan for the employees of Cullumber Company: Accum. benefit obligation Projected benefit obligation Fair value of plan assets AOCI - net (gain) or loss Settlement rate (for year) Expected rate of return (for year) The corridor for 2026 is 1/1/25 $1102000. $1073600. $1410700. $1212200. $9340000 9865000 9025000 0 12/31/25 $9760000 10558000 11020000 (1522000) 11% 8% 12/31/26 $12700000 14107000 12154000 (1690000) 11% Cullumber estimates that the average remaining service life is 16 years. Cullumber's contribution was $1323000 in 2026 and benefits paid were $987000. 7%
The following information relates to the defined benefit pension plan of Nelson, Inc. Projected benefit obligation Fair value of plan assets Accumulated OCI-net actuarial gain Settlement rate (for year) Expected rate of return (for year) The interest cost for 2020 is $158,640 $211,520 12/31/19 2,644,000 3,118,000 432,000 O $240,120 O $280,140 O None of the above 6% 8% 12/31/20 4,002,000 3,328,000 480,000 For 2020, Nelson estimates that the average remaining service life of its current employees is 8 years. Nelson's contribution to the plan was $364,000 in 2020 and benefits paid to retirees were $276,000, 6% 7%