Reference no: EM132704853
The accountant for Marlin Corporation has developed the following information for the company's defined-benefit pension plan for 2017 and 2018:
Account 2017 2018
Annual Service cost $1,000,000 $1,200000
Actual return on plan assets 500,000 600,000
Amortization of prior service cost 250,000 230,000
Annual contribution to the plan 1,050,000 1,230000
Benefits paid to retirees 1,220,000 1,500,000
Settlement rate 5% 5%
Expected rate of return on plan assets 10% 9%
The projected benefit obligation at December 31, 2018, amounted to $8,750,000.
Instructions
Problem (a) Using the above information for Marlin Corporation, complete the pension worksheet for 2017 and 2018. Calculated amounts should be supported.
Problem (b) Prepare the journal entry (entries) to reflect the accounting for the company's pension plan for the year ending December 31, 2017 and 2018.
Problem (c) Determine whether there will be any net gains/losses amortization for 2019 using the corridor approach.
|
Calculate the liquidity index for infinity bank
: "Sakura Bank is facing a short-term liquidity deficit. It plans to cover this deficit with either an ordinary share issue or an interbank borrowing arrangement.
|
|
Define compensating balances
: Define "compensating balances" in the context of bank lending. Give a numerical example to illustrate how compensating balances can be used by banks
|
|
Explain two of the perspectives of the balanced scorecard
: Explain TWO of the perspectives of the Balanced Scorecard (BSC), including an example of a suitable performance measure for each perspective.
|
|
What is the amount and character of Bruce recognized gain
: Bruce Banner purchased 5,000 shares of Gamma Radiation Corporation's (GRC) stock on May 22, 1984, for $60,000. What is amount and character of recognized gain
|
|
Prepare the journal entry to reflect the accounting
: Prepare the journal entry (entries) to reflect the accounting for the company's pension plan for the year ending December 31, 2017 and 2018.
|
|
Difference between fee-for-service and capitation payments
: Describe the difference between Fee-for-Service and Capitation payments? Which is better and why? Answer in depth please.
|
|
Prepare the journal entry for harsimran inc
: Harsimran Inc., Prepare the journal entry for Harsimran Inc. to Record the exchange of the accounts payable for the note payable and cash
|
|
What is the price of the option-european call
: Consider an option on a non-dividend paying stock when the stock price is $30, the exercise price is $28, the annual interest rate is 5%, the annual volatility
|
|
Evaluate unload-reload lines and normal consolidation line
: Evaluate unload-reload lines (URL) and normal consolidation line(s) (NCL), and the parameter required to describe them.
|