Reference no: EM132605925
Questions -
Q1) Pension data for Sam Adams Inc. include the following for the current calendar year:
Discount rate, 8%
Expected return on plan assets, 10%
Actual return on plan assets, 9%
Service cost, $460,000
January 1: PBO$3,060,000 ABO 2,060,000 Plan assets 3,260,000 Amortization of prior service cost 36,000 Amortization of net gain 7,600 December 31: Cash contributions to pension fund$281,000 Benefit payments to retirees 316,000
Required -
1. Determine pension expense for the year.
2. Prepare the journal entries to record pension expense and funding for the year.
Q2) Careful Consulting Company has an unfunded postretirement benefit plan. On December 31, 2021, the following data were available concerning changes in the plan's accumulated postretirement benefit obligation with respect to one of Careful's employees:
APBO, January 1 $33,128 Interest cost ($33,128 × 8%) 2,650 Service cost (92,400 × 1/22) 4,200 APBO, December 31 $39,978
Required -
1. Over how many years is the expected postretirement benefit obligation being expensed?
2. What is the expected postretirement benefit obligation at the end of 2021?
3. When was the employee hired? (Round your answer to 1 decimal place.)
4. What is the expected postretirement benefit obligation at the beginning of 2021? (Round your final answer to the nearest whole dollar amount.)