In year two, there are no amendments to the plan, but it was a dismal year...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
In year two, there are no amendments to the plan, but it was a dismal year for investments. However, the actuary informs you that an actuarial change has been made related to expected mortality. It may now be necessary to amortize excess actuarial losses. The actuary informs you that the average remaining service lives of current active plan participants is 10 years. The actuary provides you with the following information. Service cost Interest cost Expected return on plan assets Actuarial gain/loss Plan amendment Actual return on plan assets Benefits paid Employer contributions Discount rate Expected return Salary increases 110 127 190 (80) 0 (250) (88) 50 1/1/2012 12/31/2012 4.00% 4.00% 7.00% 7.00% 4.00% 4.00% Required (11 pts): a) Prepare the disclosure for the change in plan obligation and the change in plan assets for the year and determine the ending funded status. b) Prepare the disclosure for the net period benefit cost for the period. c) Determine the amount of any amortization of gains and losses for the following year. In year two, there are no amendments to the plan, but it was a dismal year for investments. However, the actuary informs you that an actuarial change has been made related to expected mortality. It may now be necessary to amortize excess actuarial losses. The actuary informs you that the average remaining service lives of current active plan participants is 10 years. The actuary provides you with the following information. Service cost Interest cost Expected return on plan assets Actuarial gain/loss Plan amendment Actual return on plan assets Benefits paid Employer contributions Discount rate Expected return Salary increases 110 127 190 (80) 0 (250) (88) 50 1/1/2012 12/31/2012 4.00% 4.00% 7.00% 7.00% 4.00% 4.00% Required (11 pts): a) Prepare the disclosure for the change in plan obligation and the change in plan assets for the year and determine the ending funded status. b) Prepare the disclosure for the net period benefit cost for the period. c) Determine the amount of any amortization of gains and losses for the following year.
Expert Answer:
Answer rating: 100% (QA)
a Prepare the disclosure for the change in plan obligation and the change in plan assets for the year and determine the ending funded status Change in ... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Posted Date:
Students also viewed these accounting questions
-
The Ethan Company provides you with the following information on December 31, 2015 as it prepares to close its books for the year Accounts Receivable Balance (before write...
-
Cocoa Confections provides you with the following information for the most recent year of operations. The firm informs you that manufacturing overhead equals 150% of direct labor costs. Direct...
-
Hayden Corporation provides you with the following information for the month of June: Required Prepare a flexible budget for Hayden Corporation forJune. Actual (based on actual sales of 21,000 units)...
-
Match the phrase that follows with the term (a-e) it describes. estimates the number of units to be manufactured to meet sales and inventory levels integrated set of operating and financing budgets...
-
An analysis of the general ledger accounts indicates that delivery equipment, which cost $120,000 and on which accumulated depreciation totaled $40,000 on the date of sale, was sold for $75,000...
-
What are the Size and Max effects? i.e., do these effects exist? 2. Robustness: Do they exist in different markets, and different periods? 3. Explanations: What do researchers say are the reasons for...
-
What is required when necking down foot bolts to eliminate a motor foot that is bolt bound?
-
The pharmacist at Arnold Palmer Hospital, Wende Huehn- Brown, receives 12 requests for prescriptions each hour, Poisson distributed. It takes her a mean time of 4 minutes to fill each, following a...
-
Throughout the course, have learned about various concepts in international finance. This assignment provides an opportunity for you to apply those concepts and reflect on important topics in...
-
Low Crop Prices Drag Farm Towns Down with Them: Low wheat, corn, and soybean prices mean another bad year for many Midwest farmers. In response to the above newspaper headline, what government action...
-
Andrea Co. acquired 70% of Calabrese Co. on January 1, 2016. At the date of acquisition, the excess acquisition price was allocated partly to undervalued building of $108,000 (6-year remaining life)...
-
Sandhill manufactures mountain bikes. Its sales mix and contribution margin information per unit are as follows: Sales Mix Contribution Margin Destroyer 16% $150 Voyager 61% 57 Rebel 23% 39 It has...
-
Figure Q4 shows a test specimen with a circular cross section before conducting a standard tensile test. The following table (Table Q4) presents the results of the tensile test. Answer the following...
-
Sarah has recently joined the accounting department of a medium-sized company. As part of her role, she is responsible for analysing financial data and presenting it in a meaningful way. Sarah has...
-
oil prices increased 90% during the first half of 2008 just when the us recession was taking hold in other words the economy was on a decline. how did this affect the market for air travel? show a...
-
costs. of Cullumber Industries has collected the following monthly cost data for use in analyzing the behavior of maintenance Month Total Maintenance Costs Total Machine Hours January $3,192 4.230...
-
Use the information from the tables to work out the missing entries in income statement and balance sheet, and then calculate the company's return on equity. Long-term debt ratio Times interest...
-
The Ranch 888 Noodle Company sells two types of dried noodles:ramen, at $6.50 per box, and chow fun, at $7.70 per box. So farthis year, the company has sold a total of 110,096 boxes ofnoodles,...
-
Baxter Holdings reported pretax income from continuing operations of $800,000 in the first quarter of 2014. At that point, projected pretax income for the rest of the year was $1,000,000. At the end...
-
The village of Fay was recently incorporated and began financial operations on July 1, 2018, the beginning of its fiscal year. The following transactions occurred during this first fiscal year from...
-
The city of Clover ville operates a central computer center through an internal service fund. The Computer Internal Service Fund was established by a contribution of $1,000,000 from the general fund...
-
A drainage ditch is to be built to carry runoff from a subdivision. The maximum design capacity is to be $1 \mathrm{million} \mathrm{gph}(\mathrm{gal} / \mathrm{h})$ and it is to be concrete lined....
-
An open drainage canal with a rectangular cross section is $3 \mathrm{~m}$ wide and $1.5 \mathrm{~m}$ deep. If the canal slopes $950 \mathrm{~mm}$ in $1 \mathrm{~km}$ of length, what is the maximum...
-
An open drainage canal is to be constructed to carry water at a maximum rate of $10^{6} \mathrm{gpm}$. The canal is concrete lined and has a rectangular cross section, with a width that is twice its...
Study smarter with the SolutionInn App