Computing pension expense-underfunded retirement plan

Assignment Help Finance Basics

Reference no: EM13827645

Problem:

1. Taylor Corp reported the following items in the 2012 pension footnote (in millions).

Service cost	$1,012
Benefits paid to retirees	290
Interest cost	980
Actual returns on pension plan assets	1,400
Expected returns on pension plan assets	1,540
Amortization of deferred amounts	$ 62

2. Buckeye Inc. has a defined benefit retirement plan. The company's 2012 annual report includes the following excerpt about these plans (in millions):

Projected benefit obligations, January 1, 2012	$8,606
Service cost - benefits earned during the year	332
Interest cost on projected benefit obligations	446
Actuarial losses (gains)	608
Benefits paid	(294)
Settlement	(776)
Other, primarily foreign currency translation	41
Projected benefit obligations, December 31, 2012	$8,963

Plans' assets at fair value, January 1, 2012	$7,451
Actual return on plan assets	29
Company contributions	394
Benefits paid	(294)
Settlement	(776)
Other, primarily foreign currency translation	157
Plan assets at fair value, December 31, 2012	$6,961

What is the funded status of this plan?

Additional Information:

These short answer questions is from Finance. The 1st question is about computing pension expense and the 2nd question is about computation of underfunded retirement plan.

Reference no: EM13827645

Questions Cloud

Culture and perspective of new zealand : Culture and Perspective of New Zealand

Computation of impaired goodwill : On January 1, 2012, Gray purchases 100% of Morgan Biometrics Inc. for $11.4 million. At the time of acquisition, the fair market value of Morgan Biometrics' tangible net assets (excluding goodwill) is $10.2 million.

Has learning socialization increased your feeling of freedom : The problem is from Sociology and the problem discusses about the study of socialization increasing or decreasing the feeling of freedom. This has been explained in the answer.

Keeps records of the annual precipitation in different citie : A meteorological office keeps records of the annual precipitation in different cities. For one city, the mean annual precipitation is 15.3 and the standard deviation of the annual precipitation amounts is 4.2. Let x represent the annual precipitation..

Computing pension expense-underfunded retirement plan : Taylor Corp reported the following items in the 2012 pension footnote (in millions).

Pros and cons of the mean and the median : Investigate the comprative pros and cons of the mean and the median. Find examples where the mean is more appropriate than the median and vice-versa. Discuss the locations of the mean, median and mode for a normal, left-skewed and right-skewed distri..

Discuss issue of statistical power in non-parametric tests : Discuss the issue of statistical power in non-parametric tests (as compared to their parametric counterparts). Which type tends to be more powerful? Why

Pharmaceutical company rapid diagnostics pty ltd marketing : Pharmaceutical Company Rapid Diagnostics Pty Ltd Marketing Case Study

How everyone else performed in comparison : Consider a time when you took an exam in school and received your results. Your score meant more when you also knew how everyone else performed in comparison. More than just knowing the average score, maybe you were also able to see how many students..

User Account

All Pages