Carla Vista, Inc. on January 1, 2021 initiated a noncontributory, defined-benefit pension plan that grants benefits to its 109 employees for services rendered in years prior to the adoption of the pension plan. The total expected service-years of the 109 employees who are expected to receive benefits under the plan is 1,308. An actuarial consulting firm has indicated that the present value of the projected benefit obligation on January 1, 2021 was $5,628,000. On December 31, 2021 the following information was provided concerning the pension plan's operations for its first year. Employer's contribution at end of year Service cost Projected benefit obligation Plan assets (at fair value) Expected return on plan assets Settlement rate $1,690,000 690,000 6,606,600 1,690,000 9% W 8%

Carla Vista, Inc. on January 1, 2021 initiated a noncontributory, defined-benefit pension plan that grants benefits to its 109 employees for services rendered in years prior to the adoption of the pension plan. The total expected service-years of the 109 employees who are expected to receive benefits under the plan is 1,308. An actuarial consulting firm has indicated that the present value of the projected benefit obligation on January 1, 2021 was $5,628,000. On December 31, 2021 the following information was provided concerning the pension plan's operations for its first year. Employer's contribution at end of year Service cost Projected benefit obligation Plan assets (at fair value) Expected return on plan assets Settlement rate $1,690,000 690,000 6,606,600 1,690,000 9% W 8%

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 6E

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In 2019, Magenta Corporation paid compensation of 45,300 to the participants in a profit sharing plan. During 2019, Magenta Corporation contributed 13,200 to the plan. a. Calculate Magentas deductible amount for 2019. b. Calculate the amount of any contribution carryover from 2019.
Carla Vista, Inc. on January 1, 2021 initiated a noncontributory, defined-benefit pension plan that grants benefits to its 109 employees for services rendered in years prior to the adoption of the pension plan. The total expected service-years of the 109 employees who are expected to receive benefits under the plan is 1,308. An actuarial consulting firm has indicated that the present value of the projected benefit obligation on January 1, 2021 was $5,628,000. On December 31, 2021 the following information was provided concerning the pension plan's operations for its first year. Employer's contribution at end of year Service cost Projected benefit obligation Plan assets (at fair value) Expected return on plan assets Settlement rate (a) $1,690,000 Pension expense 690,000 6,606,600 1,690,000 gas 8% Compute the pension expense recognized in 2021. Assume the prior service cost is amortized over the average remaining service life of the employees.
wildhorse, inc. on january 1, 2021 initiated a noncontributory, defined-benefit pension plan that grants benefits to its 95 employees for services rendered in years prior to the adoption of the pension plan. the total expected service-years of the 95 employees who are expected to receive benefits under the plan is 1,140. an actuarial consulting firm has indicated that the present value of the projected benefit obligation on january 1, 2021 ws $5,424,000. On december 31, 2021 the following information was provided concerning the pension plan's operations for its first year. employer's contribution at end of year $1,510,000 service cost $550,000 projected benefit obligation 6,551,600 plan assets (at fair value) 1,570,000 expected return on plan assets 9% settlement rate 8% Compute the pension expense recognized in 2021. assume the prior service cost is amortized over the average remaining service life of the employees.
Company G offers a defined benefit pension plan to its employees. At December 31, 2018, the present value of the defined benefit obligation of the pension plan was $7,800,000 and the fair value of the plan assets was $8,000,000. Information pertaining to the pension plan in 2019 follows: The actuary advised that current service cost was $900,000. The discount rate used in actuarial assumptions was 5%. On June 1, 2019, Company G retroactively improved the benefits under the plan to January 1, 2019. The cost of this improvement was determined by the plan actuary to be $975,000. Benefits paid to retirees on July 1, 2019 were $750,000. Company G contributed $675,000 to the pension plan on March 1, 2019. The present value of the defined benefit obligation at December 31, 2019, was $8,125,000. The fair market value of plan assets as at December 31, 2019, was $8,375,000. • Company G has a December 31 year end. Required: • Prepare the worksheet and journal entries for 2019 using IFRS. •…
On January 1, 2020, Solan Incorporated amended its pension plan whichcaused an increase of $6,000,000 in its projected benefit obligation. Thecompany has 400 employees who are expected to receive benefits underthe company's defined-benefit pension plan. The personnel department provided the following information regarding expected employee Retirements. See image Prepare a schedule which shows the amount of annual prior service cost amortization that the company will recognize as a component of pension expense from 2020 through 2024. Your answer should include two tables;one that shows the computation of the service years and the other that shows the annual prior service cost amortization for the five years.