User Account

All Pages

Explain why we ignore contribution and actual return

Assignment Help Accounting Basics
Reference no: EM131820955

Kraft, Inc. sponsors a defined-benefit pension plan. The following data relates to the operation of the plan for the year 2013.

Service cost $250,000

Contributions to the plan 220,000

Actual return on plan assets 180,000

Projected benefit obligation (beginning of year) 2,400,000

Fair value of plan assets (beginning of year) 1,600,000

The expected return on plan assets and the settlement rate were both 10%. The amount of pension expense reported for 2013 is

a. $250,000.

b. $310,000.

c. $330,000.

d. $490,000.

Hi, can you explain why we ignore contribution and actual return when we are calculating the pension expense, which is different from the example in book? Why we minus fair value of plan assets*10%?

Reference no: EM131820955

Questions Cloud

Discuss effectiveness of the entitys internal control over : the management of a company that issues securities must accept responsibility for the effectiveness of the entity's internal control over
Lack of respect and courtesy in american society : In a national survey of 2013 adults, 1590 responded that lack of respect and courtesy in American society is a serious problem, and 1283 indicated.
What was the return on average total assets for corporation : What was the return on average total assets for the corporation as a whole for the past year? Given the different kinds of business segments the company has.
Proportion of the time the coin : Should the students interpret this result as convincing evidence that the proportion of the time the coin would land heads up is not .5?
Explain why we ignore contribution and actual return : explain why we ignore contribution and actual return when we are calculating the pension expense, which is different from the example in book
Teen boys forget whatever it was : An article titled "Teen Boys Forget Whatever It Was" appeared in the Australian newspaper
Explain the advantage and disadvantage of outsourcing : Do you know any cultural differences between China and the States. Please do some literature and give some examples.
Compute scotts net capital gain or net capital loss : Based on the information above, compute Scott's net capital gain or net capital loss for the year ended 30 June of the current tax year.
How many people do not have electricity : The new goals aim to be "sustainable" - really, really, sustainable, how many times is the word mentioned in the document?

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.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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