Defined benefit pension plan

Assignment Help Financial Accounting

Reference no: EM131260973

On January 2, 20X2, East Corp. adopted a defined benefit pension plan. The plan's service cost of $150,000 was fully funded at the end of 20X2. Prior service cost was funded by a contribution of $60,000 in 20X2. Amortization of prior service cost was $24,000 for 20X2. At December 31, 20X2, what amount should East report as prepaid pension cost?

$60,000

$36,000

$84,000

$90,000

Reference no: EM131260973

Questions Cloud

Prepare balance sheets in order to know financial position : Companies prepare balance sheets in order to know their financial position at a specific point in time. This enables them (and other users) to make a comparison to their position at previous points in time, and gives them a basis for planning for the..

Compute the cash payback period for the new hoist : Legend Service Center just purchased an automobile hoist for $32,500. The hoist has an 8-year life and an estimated salvage value of $3,470. Installation costs and freight charges were $3,580 and $840, respectively. Compute the cash payback period fo..

Calculate the charge necessary to cover abcs cost : Next year Holyspirit healthcare organization will serve 100 patients in the following manner. 30 Medicare Patients who pay $850/diagnosis. 25 Medicaid patients who pay $900 per diagnosis. Calculate the charge necessary to cover ABC’s cost. Calculate ..

Calculate the weighted cost of capital : Corporations often use different costs of capital for different operating divisions. Using an example, calculate the weighted cost of capital (WACC). What are some potential issues in using varying techniques for cost of capital for different divisio..

Defined benefit pension plan : On January 2, 20X2, East Corp. adopted a defined benefit pension plan. The plan's service cost of $150,000 was fully funded at the end of 20X2. Prior service cost was funded by a contribution of $60,000 in 20X2. Amortization of prior service cost was..

What is the inventory carrying cost per case for one month : What is the FG inventory carrying cost for 1 month? what is the inventory carrying cost per case for 1 month? what is the cost of carrying the entire FG inventory for 1 year?

Fixed costs were allocated on basis of actual hour of useage : Review the section Allocation of Service Department Costs, pages 483-490, especially the example of the use of the computer by the university. Recall that the budget formula was $100,000 fixed cost monthly plus $200 per hour of computer time used. As..

Deducted from his pay for federal income tax : Carson Smart is paid $1,200 every two weeks plus a taxable lodging allowance of $100. He is a participant in the company 401(k) plan and has $150 deducted from his pay for his contribution to the plan. He is married with two allowances. How much woul..

Record the adjustment for supplies : Hurricane begins the year with $850 in supplies. During the year, the company purchases $4,200 in supplies and debits that amount to Supplies. At year-end, supplies costing $2,200 remain on hand. Record the adjustment for supplies.

User Account

All Pages