Fukuyama Inc. has a defined benefit pension plan. Below is information pertaining to the plan for...
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Fukuyama Inc. has a defined benefit pension plan. Below is information pertaining to the plan for fiscal year 2020. 1. Service cost related to pension expense is $140,000. 2. The projected benefit obligation at the beginning of the year is $305,000. 3. The fair value of plan assets at the beginning of the year equals $280,000. 4. The actual return on plan assets equals $30,000. 5. The expected return on plan assets is 9%. 6. The settlement rate is 10%. 7. The accumulated OCI--prior service cost at the beginning of the year is $140,000. The company has a workforce of 200 employees, all of whom are expected to receive benefits under the plan. Their total number of remaining service-years is 1,000 and the service-years attributable to 2020 is 200. The company uses the years-of-service method to amortize these costs. 8. At the beginning of the year, the company has an Accumulated OCI (loss) $70,000. Any amortization is recognized on a straight-line basis over the average remaining serviċe-life of the employees. 9. The contribution made to the pension fund in 2020 was $131,000. Fukuyama Inc. has a defined benefit pension plan. Below is information pertaining to the plan for fiscal year 2020. 1. Service cost related to pension expense is $140,000. 2. The projected benefit obligation at the beginning of the year is $305,000. 3. The fair value of plan assets at the beginning of the year equals $280,000. 4. The actual return on plan assets equals $30,000. 5. The expected return on plan assets is 9%. 6. The settlement rate is 10%. 7. The accumulated OCI--prior service cost at the beginning of the year is $140,000. The company has a workforce of 200 employees, all of whom are expected to receive benefits under the plan. Their total number of remaining service-years is 1,000 and the service-years attributable to 2020 is 200. The company uses the years-of-service method to amortize these costs. 8. At the beginning of the year, the company has an Accumulated OCI (loss) $70,000. Any amortization is recognized on a straight-line basis over the average remaining serviċe-life of the employees. 9. The contribution made to the pension fund in 2020 was $131,000.
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Answer rating: 100% (QA)
ANSWER a Service cost140000 PBO 305000 Interest rate settlement10 Interest cost PBO x 10305000 x1030... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date:
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