The projected benefit obligation (PBO) and plan assets of Illini Industries' defined benefit pension plan, and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The projected benefit obligation (PBO) and plan assets of Illini Industries' defined benefit pension plan, and the balance in AOCI prior service cost and AOCI net gain, are given below in millions of $: Balance Projected benefit obligations Plan Assets AOCI-Prior service cost AOCI-Net gain 2019 Beginning Balance 2,900 3,400 525 420 2019 Ending 1) Actual return on plan assets 2) Gain or loss on plan assets (please specify gain or loss) 3) Service cost Retirees were paid $380 million, and the employer contribution to the pension fund was $240 million at the end of 2019. The expected return on plan assets was 2%, and the discount rate was 7%. There were no changes in actuarial estimates and assumption regarding the PBO, and no plan amendments. The average remaining service life of employees is 10 years. Required: Determine the following amounts for 2019. Please show your work. 3,200 3,300 500 384 4) Prior service cost amortization 5) Amortization of net gain (please demonstrate the corridor method) The projected benefit obligation (PBO) and plan assets of Illini Industries' defined benefit pension plan, and the balance in AOCI prior service cost and AOCI net gain, are given below in millions of $: Balance Projected benefit obligations Plan Assets AOCI-Prior service cost AOCI-Net gain 2019 Beginning Balance 2,900 3,400 525 420 2019 Ending 1) Actual return on plan assets 2) Gain or loss on plan assets (please specify gain or loss) 3) Service cost Retirees were paid $380 million, and the employer contribution to the pension fund was $240 million at the end of 2019. The expected return on plan assets was 2%, and the discount rate was 7%. There were no changes in actuarial estimates and assumption regarding the PBO, and no plan amendments. The average remaining service life of employees is 10 years. Required: Determine the following amounts for 2019. Please show your work. 3,200 3,300 500 384 4) Prior service cost amortization 5) Amortization of net gain (please demonstrate the corridor method)
Expert Answer:
Answer rating: 100% (QA)
1 Actual return on plan assets 3400 x 2 68 2 Gain or loss on plan as... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
Students also viewed these accounting questions
-
The projected benefit obligation was $80 million at the beginning of the year. Service cost for the year was $10 million. At the end of the year, pension benefits paid by the trustee were $6 million...
-
The projected benefit obligation and plan assets were $80 million and $100 million, respectively, at the beginning of the year. Due primarily to favorable stock market performance in recent years,...
-
The projected benefit obligation was $80 million at the beginning of the year. Service cost for the year was $10 million. At the end of the year, pension benefits paid by the trustee were $6 million...
-
Kiev Corp. was incorporated on January 2, 2020, but was unable to begin manufacturing activities until July 1, 2020, because new factory facilities were not completed until that date. The Land and...
-
Use Holts method to create a model that minimizes the MSE for the data set. Use Solver to determine the optimal values of and . a. What are the optimal values of and ? b. Prepare a line graph...
-
What is Subpart F income? How does the taxation of Subpart F income affect the ability of U.S. corporations to defer U.S. taxation on income earned by controlled foreign corporate subsidiaries?
-
The nearest neighbor method is an example of a brute force algorithm. a. True b. False
-
As an auditor for the CPA firm of Gratis and Goode, you encounter the following situations in auditing different clients. 1. JR Corporation is a closely held corporation whose stock is not publicly...
-
REVENUE RECOGNITION & MATERIAL RIGHT ( IFRS 1 5 / MFRS 1 5 ) RAY Co . provide two types of Smart - phone ( model B and model C ) to be sell. The standalone price of the smartphone is $ 1 , 5 0 0 and...
-
You are an Examiner for the Refund Integrity Program in the GST/HST Audit Division of the Canada Revenue Agency (CRA). Using sophisticated analytical tools, you are able to identify GST/HST returns...
-
Suppose the stated annual interest rate is 6%. Mike who is age 25 now and will receive a monthly wage of HK$25,000 till retirement at age 65, < 1. What is the present value (at age 25) of Mike's...
-
Demand information (per week) Region1: Normal with mean 250, std dev. 90 Region 2: Normal with mean 180, std dev. 70 Configuration 1: Warehouses at location A and B When available, use inventory to...
-
Zaiden is planning to present a writing review at the sales team's training session. Zaiden wants to use a typical letter sent to customers as an example and correct it as part of the training...
-
A partition brick wall of size 3m x 5m contains a window of area 2m. The brick wall gives a sound reduction of 50dB and the window 20 dB. Calculate the sound reduction of the whole partition at this...
-
A service-oriented business is struggling to manage its resources efficiently. How can ERP software assist in scheduling, allocating, and tracking resources such as personnel and equipment?
-
A single effect evaporator is supplied with a feed of 4200 kg/h of a 2.9 % solution of sugar in water at a temperature of 12C. The product has a concentration of 9.0 % sugar in water. The evaporator...
-
what is opertation of law in a contract
-
You are a Loan Officer with an Investment Bank. Today you need to set your lending parameters. They are: LTV: 55% 10 Year T-Bill: TBD Rate Markup: 300 Basis Points Term: 30 Years Amortization: 30...
-
Explain how each of the following liabilities would be classified in the balance sheet: A note payable of $100,000 due in five years. A note payable of $100,000 payable in annual installments of...
-
A conceptual question in accounting for derivatives is: Should gains and losses on a hedge instrument be recorded as they occur, or should they be recorded to coincide (match) with income effects of...
-
How do companies account for gift cards?
-
Bond Features Define the following terms related to bonds payable. Debenture bonds Secured bonds Convertible bonds Callable bonds Face value of the bonds Face rate of interest Issue price
-
Do you agree with this statement: All liabilities could be legally enforced in a court of law? (Appendix)
-
Effect of Bond Issuance A bond with a face value of $10,000 is issued at a discount of $800 on January 1, 2008. The face rate of interest on the bond is 7%. Required 1. Was the market rate at the...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App