The following information pertains to Havana Corporation's defined benefit pension plan: ($ in thousands) 2021 2022 Beginning Beginning balances balances Projected benefit $ (6,000 ) 24 (6,504 ) obligation Plan assets 5,760 6,336 Prior service cost-AOCI 600 552 Net loss-AOCI 720 786 In 2021, Havana contributed $696 thousand to the pension fund and benefit payments of $624 thousand were made to retirees. The expected rate of return on plan assets was 10%, and the actuary's discount rate is 8%. There were no changes in actuarial estimates and assumptions regarding the PBO. What is Havana's 2021 service cost? O 276K O 528K O 648K O Cannot be determined from the given information.

The following information pertains to Havana Corporation's defined benefit pension plan: ($ in thousands) 2021 2022 Beginning Beginning balances balances Projected benefit $ (6,000 ) 24 (6,504 ) obligation Plan assets 5,760 6,336 Prior service cost-AOCI 600 552 Net loss-AOCI 720 786 In 2021, Havana contributed $696 thousand to the pension fund and benefit payments of $624 thousand were made to retirees. The expected rate of return on plan assets was 10%, and the actuary's discount rate is 8%. There were no changes in actuarial estimates and assumptions regarding the PBO. What is Havana's 2021 service cost? O 276K O 528K O 648K O Cannot be determined from the given information.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following information pertains to Havana Corporation's defined benefit pension plart 2021 2022 Beginning Beginning balances (S in thousands) Projected benefit obligation Plan asseta Prior service cost-AOCI Net loss-AOCI balances $(6,900) 6,660 $(7,404) 7,236 690 610 810 886 At the end of 2021, Havana contributed $680 thousand to the pension fund and benefit payments of $684 thousand were made to retirees. The expeched rate of return on plan assets was 10%, and the actuary's discount rate is 7%. There were no changes in actuarial estimates and assumptions regarding the PBO. What is the 2021 service cost for Havana's plan?
The following information pertains to LL Marshall Corporation's defined benefit pension plan: 2024 Beginning 2025 Beginning balances, $ (7,600) 7,300 760 $ 880 (S in thousands) Projected benefit obligation Plan assets Prior service cost-AOCI Net loss-AOCI balances $ (8,104) 7,936 720 $ 960 At the end of 2024, LL Marshall contributed $600 thousand to the pension fund and benefit payments of $754 thousand were made to retirees. The expected rate of return on plan assets was 12%, and the actuary's discount rate is 8%. There were no changes in actuarial estimates and assumptions regarding the PBO. What is the 2024 service cost for LL Marshall's plan?
The following information pertains to Havana Corporation's defined benefit pension plan: ($ in thousands) 2021Beginning balances 2022Beginning balances Projected benefit obligation $ (6,700 ) $ (7,204 ) Plan assets 6,400 7,036 Prior service cost–AOCI 670 640 Net loss–AOCI $ 790 $ 850 At the end of 2021, Havana contributed $730 thousand to the pension fund and benefit payments of $664 thousand were made to retirees. The expected rate of return on plan assets was 10%, and the actuary's discount rate is 8%. There were no changes in actuarial estimates and assumptions regarding the PBO.What is Havana’s 2021 gain or loss on plan assets?
. The following information pertains to Sowell Corporation's defined benefit pension plan: 2022 2023 Beginning Beginning ($ in thousands) balances balances Projected benefit obligation $ (6,000) $ (6,504) Plan assets 5,760 6,336 Prior service cost–AOCI 600 552 Net loss–AOCI $ 720 $ 786 At the end of 2022, Sowell contributed $696 thousand to the pension fund and benefit payments of $624 thousand were made to retirees. The expected rate of return on plan assets was 10%, and the actuary's discount rate is 8%. There were no changes in actuarial estimates and assumptions regarding the PBO. What is the 2022 pension expense for Sowell's plan? A. $594 thousand. B. $606 thousand. C. $678 thousand. D. None of these are correct.
the following information pertains to Dreamworld Corporation's defined benefit pension plan:($ in thousands) 2021Beginning balances 2022Beginning balances Projected benefit obligation $ (7,700 ) $ (8,204 ) Plan assets 7,400 8,036 Prior service cost–AOCI 770 700 Net loss–AOCI $ 890 $ 960 At the end of 2021, Dreamworld contributed $745 thousand to the pension fund and benefit payments of $764 thousand were made to retirees. The expected rate of return on plan assets was 10%, and the actuary's discount rate is 7%. There were no changes in actuarial estimates and assumptions regarding the PBO. What is the 2021 pension expense for Dreamworld’s plan?
The following information pertains to Foundry Inc.'s defined benefit pension plan: 2021 2022 Beginning Beginning ($ in thousands) balances balances Projected benefit obligation $ ( 6,100) $ (6,604) Plan assets 5,800 6,436 Prior service cost-AOCI 610 575 Net loss-AOCI 2$ 730 2$ 816 At the end of 2021, Foundry contributed $715 thousand to the pension fund and benefit payments of $624 thousand were made to retirees. The expected rate of return on plan assets was 11%, and the actuary's discount rate is 8%. There were no changes in actuarial estimates and assumptions regarding the PBO. What is the 2021 pension expense for Foundry's plan? Multiple Choice $625 thousand. None of these are correct. $532 thousand. $603 thousand.
The following information is available for BDM Corporation's defined benefit pension plan: Defined benefit obligation, opening balance, accounting basis Fair value of plan assets Current service cost Discount rate Actual return earned on plan assets Contributions (funding) Benefits paid to retirees (a) 2023 2024 Your answer is partially correct. 2025 Asset/Liability Llability Liability Liability $ $ 2023 175.000 165,000 35,000 $ 7% Amount 8% 44,000 24,800 2024 On January 1, 2023, BDM amended its pension plan, resulting in past service costs with a present value of $78,200. ? ? $47,250 7% 6% Calculate the pension plan's surplus or deficit and the pension liability or asset reported on the December 31, 2023, 2024, and 2025 statements of financial position assuming that BDM accounts for its pension plan under ASPE. (Round answers to O decimal places, e.g. 5,275.) 44,000 25,000 2025 ? ? $52,500 7% 7% 44,000 28,400
The following information pertains to Foundry Inc.'s defined benefit pension plan: ($ in thousands) 2021Beginning balances 2022Beginning balances Projected benefit obligation $ (6,800 ) $ (7,304 ) Plan assets 6,500 7,136 Prior service cost–AOCI 680 660 Net loss–AOCI $ 800 $ 880 At the end of 2021, Foundry contributed $690 thousand to the pension fund and benefit payments of $674 thousand were made to retirees. The expected rate of return on plan assets was 11%, and the actuary's discount rate is 8%. There were no changes in actuarial estimates and assumptions regarding the PBO.What is the 2021 pension expense for Foundry’s plan? Multiple Choice $498 thousand. None of these are correct. $593 thousand. $665 thousand.
The funded status of Patel Paneling Incorporated's defined benefit pension plan and the balances in prior service cost and the net gain-pensions, are given below. ($ in thousands ) 2024 Beginning Balances 2024 Ending Balances Projected benefit obligation $ 2,300 $ 2,501 Plan assets 2,400 2,591 Funded status 100 90 Prior service cost-AOCI 325 300 Net gain- AOCI 330 300 Retirees were paid $270, 000, and the employer contribution to the pension fund was $245,000 at the end of 2024. The expected rate of return on plan assets was 10%, and the actuary's discount rate is 7% . There were no changes in actuarial estimates and assumptions regarding the PBO. Required: Determine the actual return on plan assets of 2024. Determine the loss or gain on plan assets of 2024. Determine the service cost of 2024. Determine the pension expense of 2024. Determine the average remaining service life of active employees (used to determine amortization of the net gain) for 2024. Note: For all requirements,…
The following information is available for WJB Corporation's defined benefit pension plan: Defined benefit obligation, opening balance, accounting basis Fair value of plan assets Current service cost Discount rate Actual return earned on plan assets Contributions (funding) Benefits paid to retirees (a) 2023 2024 Your answer is partially correct. 2025 Asset/Liability Liability Liability 2023 Liability 175,000 165,000 Amount 35,000 7% 8% 44,000 22,200 2024 ? ? $47,250 7% 6% 44,000 On January 1, 2023, WJB amended its pension plan, resulting in past service costs with a present value of $78,400. 25,900 2025 ? Calculate the pension plan's surplus or deficit and the pension liability or asset reported on the December 31, 2023, 2024, and 2025 statements of financial position assuming that WJB accounts for its pension plan under ASPE. (Round answers to O decimal places, e.g. 5,275.) ? $52,500 7% 7% 44,000 30,300
The funded status of Patel Paneling Incorporated's defined benefit pension plan and the balances in prior service cost and the net gain−pensions, are given below. ($ in thousands) 2024 Beginning Balances 2024 Ending Balances Projected benefit obligation $ 2,300 $ 2,501 Plan assets 2,400 2,591 Funded status 100 90 Prior service cost—AOCI 325 300 Net gain–AOCI 330 300 Retirees were paid $270,000, and the employer contribution to the pension fund was $245,000 at the end of 2024. The expected rate of return on plan assets was 10%, and the actuary’s discount rate is 7%. There were no changes in actuarial estimates and assumptions regarding the PBO. Determine the actual return on plan assets of 2024. Determine the loss or gain on plan assets of 2024. Determine the service cost of 2024. Determine the pension expense of 2024. Determine the average remaining service life of active employees (used to determine amortization of the net gain) for 2024. Note: For all…
Rosaria Co. sponsors a defined benefit pension plan. For the current year ended December 31, thefollowing information relevant to the plan has been accumulated:Defined benefit obligation, 1/1 P11,250,000Fair value of plan assets, 1/1 10,500,000Current service cost 1,050,000Past service cost 2,200,000Actual return on plan assets 600,000Decrease in defined benefit obligation due tochanges in actuarial assumptions300,000Discount rate 8%Requirements:1. In the working papers computations, what balance of plan assets will be determined?2. In the working papers computations, what balance of benefit obligation will be determined?3. Calculate the amount that the entity would recognize in profit or loss for the year in accordancewith the revised PAS 19.4. Calculate the amount that the entity would recognize in other comprehensive income for theyear in accordance with the revised PAS 19.