Calculate the defined benefit obligation at December

Assignment Help Accounting Basics
Reference no: EM132438493

Question - On January 1, 2016, Carrot ltd. reported the following balances relating to their defined benefit pension plan:

Defined benefit obligation $3,200,000

Fair Value of plan assets $3,200,000

Other data that is related to the plan includes

Current service cost $140,000

Contributions to the plan $204,000

Actual return on plan assets $192,000

Benefits paid $200,000

Interest (discount) rate 9%

How do you calculate the defined benefit obligation at December 31, 2016? as well as how do you calculate fair value of the plan assets at December 31, 2016? Also how would you calculate the pension expense for 2016? Finally, which journal entries would you need to record pension expense and the contributions in 2016?

Reference no: EM132438493

Questions Cloud

Formal email persuading a lender to defer paying : Many college graduates today leave school with large debts from student loans. Though the loans must be repaid, the time to do so and the monthly payment
Discuss the legal implications : Discuss the legal implications of this scenario. Be sure to state the legal issues, state the law that applies and finally state how judge would decide and why
What is meant by the term national competitive advantage : What is meant by the term national competitive advantage, and what are the attributes of a nation that affect the global competitiveness of companies located
How will equal employment opportunity impact you in future : Discuss some of the protected classes, (race, sex,religion etc.) covered by Equal Employment Opportunity and why they are important in today's setting.
Calculate the defined benefit obligation at December : How do you calculate the defined benefit obligation at December 31, 2016? as well as how do you calculate fair value of the plan assets at December 31, 2016
Functional strategies to improve differentiation : List the features that need to be included in functional strategies to improve differentiation.
Case study - Violence and Self-Defense : Case study - Violence and Self-Defense, As a pacifist, how should you respond to the intruder who is threatening your own life and that of your family?
Give a company a competitive advantage : Describe how business-level strategies give a company a competitive advantage over actual and potential rivals.
What is the key to establishing criminal liability : Who can be found guilty of business crime and what is the key to establishing criminal liability? What is the test for the tort of invasion of privacy?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd