Reference no: EM132940487
Questions -
Q1. The actuarial valuation report of an entity shows the following information:
Present value of defined benefit obligation, Jan 1 340,000
Current service cost 30,000
Discount rate 10%
Benefits paid to retirees 100,000
Actuarial gain 60,000
How much is the year-end balance of the present value of defined How benefit obligation?
a. 210,000
b. 244,000
c. 304,000
d. 364,000
Q2. The actuarial valuation report of an entity shows the following information:
Present value of defined benefit obligation, Jan 1 280,000
Discount rate 14%
Benefits paid to retirees 90,000
Actuarial gain 60,000
Present value of defined benefit obligation, Dec 31 210,000
How much is the current service cost?
a. 40,800
b. 44,800
c. 48,200
d. 79,200
Q3. Information on an entity's plan assets is shown below:
Fair value of plan assets, Jan. 1 120,000
Return on plan assets 40,000
Contributions to the retirement fund during the year 280,000
Benefits paid to retirees 160,000
Actuarial loss 60,000
How much is the fair value of the plan assets as of year-end?
a. 220,000
b. 240,000
c. 280,000
d. 340,000
Q4. Information on an entity's plan assets is shown below:
Fair value of plan assets, Jan. 1 341,000
Contributions to the retirement fund during the year 32,000
Benefits paid to retirees 89,000
Actuarial loss 50,000
Fair value of plan assets, Dec. 31 335,000
How much is the return on plan assets during the year?
a. 51,000
b. 81,000
c. 101,000
d. 1,000
Q5. The following information relates to the defined benefit pension plan for the McDonald Company for the year ending December 31, 2002.
Present value of defined benefit obligation, Jan. 1 4,600,000
Present value of defined benefit obligation, Dec. 31 4,729,000
Fair value of plan assets, January 1 5,035,000
Fair value of plan assets, December 31 5,565,000
Expected return on plan assets 450,000
Amortization of deferred gain on settlement of plan 32,500
Employer contributions 425,000
Benefits paid to retirees 390,000
Discount rate 10%
Current service cost for the year would be
a. 59,000.
b. 94,000.
c. 129,000.
d. 390,000
Q6. On January 1, 2002, Crother Co.'s estimated a present value of defined benefit obligation of P440, 000 based on a settlement rate of 12 percent. Pension benefits paid to retirees totaled P60, 000. Service costs for 2002 amounted to P148, 000. Values of the plan assets were P350, 000 and P400, 00 December 31, 2001, and December 31, 2002, respectively. Projected benefit obligation at December 31, 2002, was
a. 528,000
b. 580,800
c. 630,800
d. 640,800
Q7. The following information relates to Irasly Inc. at December 31, 2002:
Fair value of plan assets 1,520,000
Market related asset value 1, 440,000
Present value of defined benefit obligation 1,960,000
Projected benefit obligation 2,040,000
Past service cost (recognized in full during the period) 24,000
Prepaid/accrued pension cost 0
The net defined benefit liability at December 31, 2002, for Irasly Inc. is
a. 0.
b. 440,000.
c. 480,000.
d. 520,000
Q8. On January 1, 2002, Cubs Corporation adopted a defined benefit pension plan. The plan's service cost of P150, 000 was fully funded at the end of 2002. Past service cost was funded by a contribution of P60, 000 in 2002. Past service cost was P24, 000 for 2002. What is the amount of Cub's prepaid pension cost at December 31, 2002?
a. 36,000
b. 60,000
c. 84,000
d. 90,000