Reference no: EM132991503
Questions -
Q1. At the beginning of the current year, Amara Company provided the following data in connection with a defined benefit plan:
Fair value of plan assets 6,950,000
Projected benefit obligation 7,500,000
Following information for the current year:
Current Service cost 1,500,000
Past service cost 400,000
Discount rate 10%
Actual return on plan assets 650,000
Benefits paid to retirees 850,000
Contribution to the plan 1,750,000
1. Determine the employee benefit expense for the current year
a. 1,955,000 b. 1,205,000 c. 1,555,000 d. 2,650,000
2. Determine the remeasurement at year-end
a. 45,000 gain b. 45,000 loss c. 155,000 gain d. 155,000 loss
Q2. Rose Company provided the following information regarding to the defined benefit plan for the current year:
Past service cost 1,150,000
Current service cost 1,500,000
Actual return on plan assets 250,000
Interest expense on PBO 390,000
Interest income on plan assets 530,000
1. What is the total defined benefit cost?
a. 2,800,000 b. 2,970,000 c. 2,510,000 d. 2,790,000
Q3. The following data was given by Pido Co. about its Pension Plan during the year:
Current Service Cost 1,000,000
Actuarial Gain 400,000
Projected benefit obligation, January 1 6,000,000
Fair Value of Plan assets, Beg. 5,700,000
Past service cost 760,000
Actual return on Plan assets 200,000
Settlement rate 10%
1. What is the Defined Benefit Cost?
a. 2,950,000 b. 2,930,000 c. 2,900,000 d. 2,850,000 e. 1,760,000
2. What is the Interest Income?
a. 110,000 b. 600,000 c. 570,000 d. 550,000
3. What is the remeasurement gain/loss
a. 50,000 Loss b. 30,000 Gain c. 30,000 Loss d. 50,000 Gain
Q4. At the beginning of 2018, Mark Company had the following balances in the memorandum records with respect to a defined benefit plan:
FV of plan assets 5,000,000
Projected benefit obligation 6,000,000
During the year, the accountant determined current service cost of 1,500,000. Discount rate of 10%, actual return on plan asset is 700,000, entity contributed 1,200,500 at the end of the year
1. Determine the employee benefit expense for the current year
a. 1,500,000 b. 1,600,000 c. 2,700,500 d. 2,600,000
2. Determine the prepaid/accrued liability at year- end
a. 1,199,500 b. 1, 900,000 c. 1,899,500 d. 1,299,500