The following information is for Ridge Company's defined benefit pension plan for Year 4. Facts: 840,000...
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The following information is for Ridge Company's defined benefit pension plan for Year 4. Facts: 840,000 PBO, 12/31/Y3 PBO, 12/31/Y4 Fair value of plan assets, 12/31/Y3 Fair value of plan assets, 12/31/Y4 870,000 920,000 975,000 175,000 166,000 285,000 Contributions to the plan Benefits paid by the plan Unrecognized prior service cost Service cost 125,000 Average remaining service life 15 years Tax rate 40% Discount rate 4% Actual rate of return 5% Expected rate of return 4.5% Ridge Company expects to pay benefits of $210,000 in Year 5 and has elected to recognize gains and losses in other comprehensive income in the period incurred. To prepare each required journal entry: • Cick on a cell in the Account Name column and select the appropriate account. An account may be used once or not at all for a journal entry. • Enter the corresponding debit or credit amount in the associated column. • All amounts will be automatically rounded to the nearest dollar. • Not all rows in the table might be needed to complete each journal entry. PART A: Funded Status Please use the information provided above to answer the following question, In the Classification column, select the answer from the option list provided. Enter the appropriate amount in the Amount column. Classification Amount 122 What is the classification and amount of the Year 4 funded status of Ridge Company's pension plan? The following information is for Ridge Company's defined benefit pension plan for Year 4. Facts: 840,000 PBO, 12/31/Y3 PBO, 12/31/Y4 Fair value of plan assets, 12/31/Y3 Fair value of plan assets, 12/31/Y4 870,000 920,000 975,000 175,000 166,000 285,000 Contributions to the plan Benefits paid by the plan Unrecognized prior service cost Service cost 125,000 Average remaining service life 15 years Tax rate 40% Discount rate 4% Actual rate of return 5% Expected rate of return 4.5% Ridge Company expects to pay benefits of $210,000 in Year 5 and has elected to recognize gains and losses in other comprehensive income in the period incurred. To prepare each required journal entry: • Cick on a cell in the Account Name column and select the appropriate account. An account may be used once or not at all for a journal entry. • Enter the corresponding debit or credit amount in the associated column. • All amounts will be automatically rounded to the nearest dollar. • Not all rows in the table might be needed to complete each journal entry. PART A: Funded Status Please use the information provided above to answer the following question, In the Classification column, select the answer from the option list provided. Enter the appropriate amount in the Amount column. Classification Amount 122 What is the classification and amount of the Year 4 funded status of Ridge Company's pension plan?
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Related Book For
Fundamentals of Advanced Accounting
ISBN: 978-0077862237
6th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
Posted Date:
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