ces Electronic Distribution has a defined benefit pension plan. Characteristics of the plan during 2024 are...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
ces Electronic Distribution has a defined benefit pension plan. Characteristics of the plan during 2024 are as follows: DBO balance, January 1 Plan assets balance, January 1 Service cost Interest cost Gain from change in actuarial assumption Benefits paid Actual return on plan assets Contributions 2024 ($ millions) $510 200 90 60 32 (42) 12 80 The expected long-term rate of return on plan assets was 10%. There were no AOCI balances related to pensions on January 1, 2024, but at the end of 2024, the company amended the pension formula, creating a prior service cost of $16 million. Assume Electronic Distribution prepares its financial statements according to International Financial Reporting Standards (IFRS). Also assume that 10% is the current interest rate on high-quality corporate bonds. Required: 1. Calculate the net pension cost for 2024, separating its components into appropriate categories for reporting. 2. Prepare the journal entries to record (a) the components of net pension cost, (b) gains or losses, (c) past service cost, (d) funding, and (e) payment of benefits for 2024. 3. What amount will Electronic Distribution report in its 2024 balance sheet as a net pension asset or net pension liability? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the net pension cost for 2024, separating its components into appropriate categories for reporting. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Enter credit amounts with a minus sign and debit amounts with a positive sign. Reported in income statement: Service cost ($ in millions) $ 0 ces Electronic Distribution has a defined benefit pension plan. Characteristics of the plan during 2024 are as follows: DBO balance, January 1 Plan assets balance, January 1 Service cost Interest cost Gain from change in actuarial assumption Benefits paid Actual return on plan assets Contributions 2024 ($ millions) $510 200 90 60 32 (42) 12 80 The expected long-term rate of return on plan assets was 10%. There were no AOCI balances related to pensions on January 1, 2024, but at the end of 2024, the company amended the pension formula, creating a prior service cost of $16 million. Assume Electronic Distribution prepares its financial statements according to International Financial Reporting Standards (IFRS). Also assume that 10% is the current interest rate on high-quality corporate bonds. Required: 1. Calculate the net pension cost for 2024, separating its components into appropriate categories for reporting. 2. Prepare the journal entries to record (a) the components of net pension cost, (b) gains or losses, (c) past service cost, (d) funding, and (e) payment of benefits for 2024. 3. What amount will Electronic Distribution report in its 2024 balance sheet as a net pension asset or net pension liability? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the net pension cost for 2024, separating its components into appropriate categories for reporting. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Enter credit amounts with a minus sign and debit amounts with a positive sign. Reported in income statement: Service cost ($ in millions) $ 0
Expert Answer:
Answer rating: 100% (QA)
Required 1 Calculate the net pension cost for 2024 separating its components into appropriate categories for reporting To calculate the net pension co... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
You are preparing a free cash flow analysis for Jensen Corporation. The net working capital charge for year three of a five-year cash flow proforma is derived from? A. The difference in net working...
-
How do the Uniform Trade Secrets Act (UTSA) and the Economic Espionage Act of 1996 differ? Why don't these acts always provide a sufficient remedy for the theft of trade secrets?
-
In Section 13.6, adjusted mean BMI values were obtained for the two nominal variables exercise and tobacco_now. A drawback of the approach used is that these four adjusted means were estimated for...
-
In Problem find the indicated function or value if C(x, y) = 3x 2 + 10xy - 8y 2 + 4x - 15y - 120. C yx (x, y)
-
For the circuit in Figure P6.54, the parameters are \(V_{C C}=5 \mathrm{~V}\) and \(R_{E}=500 \Omega\). The transistor parameters are \(\beta=120\) and \(V_{A}=\infty\). (a) Design the circuit to...
-
(EPS with Convertible Bonds, Various Situations) In 2010 Buraka Enterprises issued, at par, 75 $1,000, 8% bonds, each convertible into 100 shares of common stock . Buraka had revenues of $17,500 and...
-
Critical analysis of industry structure, competition and strategic groups of Etihad Airways. 1. Industry structure analysis 2. Industry competition analysis 3. Strategic group analysis
-
Andover Stores uses the average cost retail method to estimate its ending inventory. Information as of June 30, 2024, is as follows: Retail Beginning inventory Net purchases Net sales Cost $ 46,000 $...
-
Aaron Reed, a photographer, was in a dispute with Ezelle Investment Properties, Inc., over Ezelle allegedly using one of Reeds photographs without permission. Reed sent Ezelle a cease-and-desist...
-
Daphne Brown-Wright worked as a teacher for East St. Louis School District 189 from 1975 until 1998 and then returned as an administrator from 2002 until 2012, thus serving the District for 33...
-
In July 2008, Brian, Dale, and Sandra Allen signed a contract with East Resources, Inc., concerning 148 acres of the Allens property. East wanted to develop and exploit the oil and gas resources...
-
What is the plain-meaning rule?
-
On February 16, 2005, Joseph and Margaret Buset borrowed $192,000 from Fremont Investment & Loan (the Originator). The loan was secured by a mortgage on a residential condominium. The mortgage named...
-
Please see the debate by checking out the following: http://www.debate.org/opinions/are-labor-unions-really-necessary-to-protect-worker-rights based upon the course reading and any other source...
-
Represent each of the following combination of units in the correct SI form using an appropriate prefix: (a) m/ms, (b) k m, (c) k s /mg, and (d) k m N.
-
The following were among transactions of Everluck Enterprises Ltd during the financial years ending 30 June 2023 and 30 June 2024. Required Record in general journal form all the above transactions,...
-
How would each of the following liabilities be classified (current, non-current, or both) at the end of the financial year? Unearned revenue Accrued expenses Provision for warranty repair costs...
-
At 30 June 2024, the accountant for Woodbine Construction, Mary Ellam, is preparing the financial statements for the year ended on that date. To calculate the annual leave payable, the accountant had...
Study smarter with the SolutionInn App