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financial reporting and analysis
Financial Reporting And Analysis 4th Edition Lawrence Revsine, Daniel Collins - Solutions
Omega Corporation's comparative balance sheet accounts worksheet at December 31, 2008 and 2007 follow with a column showing the increase (decrease) from 2007 to 2008.Additional Information:• On December 31, 2007, Omega acquired 25% of Belle Company’s common stock for \($275,000\). On that date,
Rite Aid Corporation operates retail drugstores in the United States. It is one of the country’s largest retail drugstore chains with 3,333 stores in operation as of March 3, 2007. The company’s drugstores’ primary business is pharmacy services. The company also sells a full selection of
Dice Corporation's balance sheet accounts as of December 31, 2008 and 2007 and information relating to 2008 activities follow.Information relating to 2008 activities follows:• Net income for 2008 was \($690,000\).• Declared and paid cash dividends of \($240,000\) in 2008.• Sold equipment
The disclosure rules for business combinations complicate financial analysis. Trend analysis becomes difficult because comparative financial statements are not retroactively adjusted to include data for the acquired company for periods prior to the acquisition.For example, consider Shopko’s
City Holding Company is a multibank holding company headquartered in West Virginia. The Company is comprised of multiple facilities located in West Virginia, Ohio, and California. The banking subsidiaries provide a full range of banking services and make investments in debt and equity securities
On June 17, Year 2, Sears, Roebuck, and Company acquired Lands’ End. Sears’ income statements and balance sheets have been condensed from the Year 2 annual report. Sears disclosed the acquisition in Note 2, and disclosed the effect of implementing SFAS No. 142 in Note 17.Note 2—Acquisition On
Excerpts from the Year 2 annual report of Air Products and Chemicals, Inc. follow. The income statement and balance sheet are condensed but the footnote entitled "Summarized Financial Information of Equity Affiliates" is shown in its entirety. The footnote provides information on several joint
Information for ABC Company is as follows ($ in thousands):Required:What is the net cash provided by operating activities? Net income Equity in investee loss Decrease in prepaid expenses Cash paid for new plant equipment Amortization of premium on bonds payable Decrease in accounts payable Increase
Lino Company’s worksheet for the preparation of its 2008 statement of cash flows included the following information:Lino’s 2008 net income is $150,000.Required:What amount should Lino include as net cash that is provided by operating activities in the statement of cash flows? December 31
Patsy Corporation has estimated its activity for December 2008. Selected data from these estimated amounts are as follows:Required:1. Calculate accrual-basis net income for December.2. On the basis of the preceding data, what is the net cash flow provided from operating activities for December?
Roe Company is preparing a statement of cash flows for the year ended December 31, 2008. It has the following account balances:During 2008, Roe sold for \($26,000\) a machine that cost \($40,000\), and purchased several other items of machinery.Required:1. How much depreciation expense was recorded
Karr, Inc. reported net income of \($300,000\) for 2008. Changes occurred in several balance sheet accounts as follows:Additional Information:1. During 2008, Karr sold equipment that cost \($25,000\) and had accumulated depreciation of \($12,000\), for a gain of \($5,000\).2. In December 2008, Karr
In preparing its cash flow statement for the year ended December 31, 2008, Reve Company collected the following data:Required:Determine the following amounts that should be reported in Reve's 2008 statement of cash flows.1. What amount should Reve report as net cash used in investing activities?2.
Alp, Inc. had the following activities during 2008:• Acquired 2,000 shares of stock in Maybel, Inc. for \($26,000\).• Sold an investment in Rate Motors for \($35,000\) when the carrying value was \($33,000\).• Acquired a \($50,000\), four-year certificate of deposit from a bank. (During the
Kollar Corporation’s transactions for the year ended December 31, 2008 included the following:1. Purchased real estate for \($550,000\) using cash borrowed from a bank.2. Sold investment securities for \($500,000\) .3. Paid dividends of \($600,000\).4. Issued 500 shares of common stock for
Metro, Inc. reported net income of $150,000 for 2008. Changes occurred in several balance sheet accounts during 2008 as follows:Required:Determine the reported net cash provided by operating activities for Metro in 2008. Investment in Videogold, Inc. stock, carried on the equity basis Accumulated
The differences in Beal Inc.s balance sheet accounts at December 31, 2008 and 2007 are presented next:The following information is related to 2008:• Net income of \($790,000\).• Declared cash dividends of \($500,000\).• Sold a building costing \($600,000\) and having a carrying amount of
During 2008, Xan, Inc. had the following activities related to its financial operations:Required:In Xan’s 2008 statement of cash flows, how much should net cash used in financing activities be? Payment for the early retirement of long-term bonds payable (carrying value $370,000) Distribution in
The following data pertain to Tyne Company’s investments in marketable equity securities.(Assume that all securities were held throughout 2008 and 2009.)Required:1. What amount should Tyne report as unrealized holding gain (loss) in its 2009 income statement?2. What amount should Tyne report as
During 2008, Rex Company purchased marketable equity securities as a short-term investment.These securities are classified as available for sale. The cost and market values at December 31, 2008 follow:Rex sold 1,000 shares of Company B stock on January 31, 2009 for $15 per share, incurring $1,500
Information related to Jones Company’s portfolio of trading securities for December 31, 2008 follows:Jones reported a $10,000 credit balance in its Market adjustment—Trading securities account in its December 31, 2007 (prior year) balance sheet. Assume that it sold no trading securities during
Immediately after Sea Company purchased 60% ownership of Island Company, the separate condensed balance sheets of the two companies are as follows:Required:What is the dollar amount of the total assets in the consolidated balance sheet immediately after the acquisition under the purchase method?
Stone has provided the following information on its available-for-sale securities:It reported $1,500 in the contra-asset valuation account to reduce these securities to their market value at December 31, 2007.Required:What amount should be debited as an unrealized loss to the stockholders’ equity
Founded on January 1, 2008, Gehl Company had the following short-term investments in securities at the end of 2008 and 2009 (all were held in the “trading” portfolio):Required:If the company recorded a $4,000 debit to its Market adjustment— Trading securities account at the end of 2009 as its
1. An entity is generally considered to be a variable interest entity (VIE) subject to consolidation by the sponsoring entity if outside third-party equity is less than what percentage of the market value of the VIE's assets?2. When two or more corporations establish an entity deemed to be a VIE
Pate Corp. owns 80% of Strange Inc’s common stock. During 2008, Pate sold inventory to Strange for $600,000 on the same terms as sales made to outside customers. Strange sold the entire inventory purchased from Pate by the end of 2008. Pate and Strange report the following for 2008.Required:1.
A wholly owned subsidiary of Ward, Inc. has certain expense accounts for the year ended December 31, 2008, stated in local currency units (LCU) as follows:Assume that the LCU is the subsidiary’s functional currency and that the charges to the expense accounts occurred approximately evenly during
Lindy, a calendar-year U.S. corporation, bought inventory items from a supplier in Germany on November 5, 2008 for 100,000 euros, when the spot rate was $0.4295. At Lindy’s December 31, 2008, year-end, the spot rate was $0.4245. On January 15, 2009 Lindy bought 100,000 euros at the spot rate of
On January 5, 2009, Alpha Inc. acquired 80% of the outstanding voting shares of Beta Inc. for $2,000,000 cash. Following are the separate balance sheets for the two companies immediately after the stock purchase, as well as fair market value information regarding Beta Inc.:Required:1. Give the
Balance sheet data for Herb Corporation and Aside Chemical Company at December 31, 2007 follow:Required:1. Assume that on January 1, 2008, Herb sold an additional 100,000 shares of its stock to its existing shareholders for \($425,000\). It then used the stock issue's entire proceeds to buy all of
On January 1, 2008, Figland Company purchased for cash 40% of Irene Company's 300,000 shares of voting common stock for \($1,800,000\). At the time, 40% of the book value of the underlying equity in Irene’s net assets was \($1,400,000;\) \($50,000\) of the excess was attributed to the excess of
Consider the following information:1. Giant Motors purchases 5% of Crane Tire Company’s common stock (one of its suppliers)for \($30\) million on January 1, 2008.2. Crane earned \($25\) million in net income for 2008.3. Crane pays total dividends of \($15\) million during 2008.4. The market value
Second National Insurance Company provided this information for its trading securities portfolio:Required:1. Provide the journal entries to record the mark-to-market adjustment on December 31, 2007. Assume that Second National uses an account entitled Market adjustment—trading securities to
At December 31, 2007, Poe Corporation properly reported the following available-for-sale securities.All were acquired in 2007.On January 2, 2008, Poe purchased 100,000 shares of Scott Corporation common stock for \($1,700,000\), representing 30% ofS cott’s outstanding common stock and an
Consider the following sequence of events:• On January 1, 2008, Big Time Motors purchased 25% of Cooper Tire Company’s common stock (one of its suppliers) for \($150\) million. The book value of Cooper's net assets on this date was \($400\) million.*• Cooper earned \($25\) million in net
On January 5, 2008, Newyork Capital Corporation purchased 30% of the outstanding common shares of Delta Crating Corp. for \($250\) million and accounts for this investment under the equity method. The following information is available regarding Delta Crating Corp.Two-thirds of the difference
On January 1, 2008, Delta Inc. acquired 80% of Sigma Company’s outstanding stock for $80,000 cash. Following are the balance sheets for Delta and Sigma immediately before the acquisition, as well as fair value information regarding Sigma:Required:1. Give the journal entry Delta would make to
On January 1, 2000, DGA, Inc. acquired all of CLH Systems’ outstanding stock in exchange for |DGA’s common stock, which had a \($100,000\) market value. The acquisition is accounted for as a purchase. Following are the balance sheets for DGA and CLH Systems immediately before the acquisition,
Prince Corp. and Sprite Corp. reported the following balance sheets at January 1, 2008:On January 2, 2008, Prince issued $36,000 of stock and used the proceeds to purchase 90% of Sprites common stock. The excess of the purchase price over Sprite’s book value of net assets was allocated 60% to
The following information is reported in the separate and consolidated balance sheets and in- come statements of Palace Corp. and its subsidiary, Show Corp., at December 31, 2008:Additional Information:During 2008, Palace sold goods to Show at the same markup on cost it uses for all sales. AtD
On October 1, 2008, Pacer Corp. acquired all of Sunny Corp:s outstanding stock for cash. The fair value of Sunny’s net assets was less than the purchase price but more than the net carrying amount. During October 2008, Pacer sold goods to Sunny at a profit. At December 31, 2008, 40% of these
The following are the balance sheets for Plate and Salad immediately prior to Plate’s September 1, 2008 acquisition of Salad:Consider the following cases:Case 1 Plate buys 100% of Salad’s common stock for \($180,000\) cash. The fair value of Salad’s assets and liabilities equal their book
Refer to the balance sheets of Plate and Salad in P16-13. Assume that Plate buys 80% of Salad’s common stock for \($180,000\) cash. The fair value of Salad’s land is \($20,000\), the fair value of Salad’s buildings and equipment is \($110,000\) and all other fair values equal book
On January 1, 2008, Pluto Company purchased all of Saturn Company’s common stock for \($1,000,000\) cash. On that date, Saturn had retained earnings of \($200,000\) and common stock of \($600,000\). The book values of Saturn’s assets and liabilities were equal to fair values except for the
Company B, an auto parts company, made several acquisitions with newly issued stock over the past five years using the purchase method of accounting. In each case, the purchase price exceeded the fair value of the acquired company’s net assets. AutoParts Heaven, a competitor, made no
The stockholders’ equity section of Warm Ways Inc:s balance sheet at January 1, 2008 shows:Warm Ways reported net income of \($9,250,000\) for 2008, declared and paid the preferred stock cash dividend, and declared and paid a \($0.25\) per share cash dividend on 1 million shares of common stock.
It's July 1, 2009, and the market price of Warm Ways’ common stock (Problem P15-1) is \($175\) per share. There are 1.1 million common shares outstanding, and the Retained earnings account shows a balance of \($45,000,000\). Management wants to declare and pay a 20% common stock dividend, but
On January 1, 2006 when its \($30\) par-value common stock was selling for \($80\) per share, Gierach Corporation issued \($10\) million of 4% convertible debentures due in 10 years. The conversion option allowed the holder of each \($1,000\) bond to convert the bond into five shares of the
The Shareholders’ Equity section of Holiday Roads Company's balance sheet shows:Net income for 2008 was \($1,700,000\), preferred stock dividends were \($200,000\), and common stock dividends were \($500,000\). The company issued 60,000 shares of common stock on July 1, 2008.Required:1. What is
Tredegar Industries Inc. makes plastic films and molded plastic products and soft alloy aluminum extrusions, distributes business applications software, and provides proprietary chemistry services. A footnote to the company's annual report states. While certain of the Company's subsidiaries' debt
Schlumberger Ltd. provides exploration and production services to the petroleum industry.The following footnote appeared in the company’s 2002 annual report:As of December 31, 2002, the Company has two types of stock-based compensation plans. . . . Schlumberger applies APB Opinion 25 and related
Abbott Stores must raise \($100\) million on January 1, 2009 to finance its expansion into the lucrative Boston metropolitan market. It will use the money to finance construction of five retail stores and a distribution center. The stores are expected to open later this year. Three alternatives for
Central Sprinkler Corporation manufactures and sells automatic fire sprinkler heads and valves, and it distributes components for automatic sprinkler systems. Selected information from the company's 2008 financial statements show:In late December 2006, Central Sprinkler bought back 1,237,000 shares
General Electric (GE) Company has two major parts: an industrial conglomerate and a financial services conglomerate. In the past decade, GE's EPS have risen almost every year. How does GE do it? One reason is the real growth in earnings of its business units. But another way is what The Wall Street
Hershey Foods Corporation manufactures and sells consumer food products including chocolate bars, chocolate drink mixes, refrigerated puddings, beverages, pasta, cough drops, and jelly beans. In August 1995, the company repurchased 9,049,773 shares of common stock from a single stockholder-Milton
Kadri Corporation reported basic EPS of \($3.00\) and diluted EPS of \($2.40\) for 2008. Its EPS calculations follow:It issued the convertible preferred stock at the beginning of 2008 and the Series A and Series B convertible debt at par in late 2007. No stock options were granted or exercised in
Trask Corporation, a public company whose shares are traded in the over-the-counter market, had the following stockholders’ equity account balances at December 31, 2007:Transactions during 2008 and other information relating to the stockholders’ equity accounts follow:• As of January 1, 2008,
The following excerpt is from Ball Corporation’s 2006 annual report.Effective January 1, 2006, the company adopted SFAS No. 123 (revised 2004), “Share-Based Payment,”and elected to use the .. . Black-Scholes valuation model. Tax benefits associated with option exercises are reported in
Refer to the 2006 General Electric Retiree Health and Life Benefits Footnote appearing in Exhibit 14.8.Required:1. Reconstruct the journal entries that GE would have made in 2006 to record the effects of its pensions. Assume that the "authors' pro forma" amounts were on its balance sheet in 2005.
Selected pension information extracted from AMR’s 2006 annual report follows. Author modifications have been made to reflect amounts as if SFAS No. 158 had been adopted as of December 31, 2005.10. Retirement Benefits All employees of the Company may participate in pension plans if they meet the
Spridget Company has | million shares of common stock authorized with a par value of \($3\) per share, of which 600,000 shares are outstanding. The company received \($7\) per share when it issued shares to the public.Required:What is the book value of the Common stock par account and the
The stockholders’ equity section of Peter Corporation’s balance sheet at December 31, 2008 follows:On January 2, 2009, Peter purchased and retired 100,000 shares of its stock for $1,800,000.Required:What is the balance in the Additional paid-in capital and Retained earnings accounts immediately
Fore Ever Yours, Inc., a manufacturer of wedding rings, issued two financial instruments at the beginning of 2008: a \($10\) million, 40-year bond that pays interest at the rate of 11% annually and 10,000 shares of \($100\) preferred stock that pays a dividend of 7.5% annually. The preferred stock
Warren Corporation was organized on January 1, 2008 with an authorization of 500,000 shares of common stock ($5 par value per share). During 2008, the company had the following capital transactions:Required:What should be the balance in the Additional paid-in capital account at December 31, 2008?
Selected information for Irvington Company follows:Required:What is Irvington’s return on common stockholders’ equity (ROCE) for 2008, rounded to the nearest percentage point? December 31 2007 2008 Preferred stock, 8%, per $100 $125,000 $125,000 Common stock 300,000 400,000 Retained earnings
Munn Corporation's records included the following stockholders’ equity accounts:Required:How many shares of preferred stock and how many shares of common stock have been issued? Preferred stock, par value $15, authorized 20,000 shares Additional paid-in capital-preferred stock Common stock, no
Newton Corporation was organized on January 1, 2008, On that date, it issued 200,000 shares of its \($10\) par-value common stock at \($15\) per share (400,000 shares were authorized). During the period from January 1, 2008 through December 31, 2010, Newton reported net income of \($750,000\) and
On December 31, 2008 the Stockholders’ Equity section of Mercedes Corporation was as follows:On March 1, 2009, the board of directors declared a 10% stock dividend and accordingly issued 900 additional shares. The stock’s fair value at that time was \($8\) per share. For the three months ended
On June 30, 2008, the Stockholders’ Equity section of Comet Corporation's balance sheet was as follows:On July 1, 2008, Comet’s board of directors declared a 5% stock dividend on common stock to be distributed on August 10, 2008 to shareholders of record on July 31, 2008. The market price of
Effective April 27, 2008, Dorr Corporation's stockholders approved a two-for-one split of the company’s common stock and an increase in authorized common shares from 100,000 shares (par value of \($20\) per share) to 200,000 shares (par value of \($10\) per share). The stock split shares were
On July 1, 2004, Austin Company granted Harry Ross, an employee, an option to buy 500 shares of Austin common stock at $30 per share. The option was exercisable for five years from the date of the grant. Ross exercised his option on October 1, 2004 and sold his shares on December 2, 2004. The
Tam Company’s net income for the year ending December 31, 2008 was \($10,000\). During the year, Tam declared and paid \($1,000\) cash dividends on preferred stock and \($1,750\) cash dividends on common stock. At December 31, 2008, the company had 12,000 shares of common stock issued and
Fountain Inc. has 5,000,000 shares of common stock outstanding on January 1, 2008. It issued an additional 1,000,000 shares of common stock on April 1, 2008 and 500,000 more on July 1, 2008. On October 1, 2008 Fountain issued 10,000 convertible bonds; each one had a $1,000 face value and paid 7%
Information concerning the capital structure of the Petrock Corporation is as follows:During 2008, Petrock paid dividends of \($1\) per share on its common stock and \($2.40\) per share on its preferred stock. The preferred stock is convertible into 20,000 shares of common stock.The 8% convertible
On July 18, 2003, Amos Corporation granted nontransferable options to certain key employees as additional compensation. The options permit the purchase of 20,000 shares of Amos'’s common stock at a price of \($30\) per share. On the grant date, the stock’s market value was \($42\) per share.
Keystone Enterprises just announced record 2008 EPS of \($5.00\), up \($0.25\) from last year. This is the 10th consecutive year that the company has increased its EPS, an enviable record. Unfortu- nately, management fears that this string of EPS increases is about to be broken. Keystone is
The 2002 annual report of Procter & Gamble Company contained the following information: The ESOP borrowed \($1,000\) in 1989, which has been guaranteed by the Company. The proceeds were used to purchase Series A ESOP Convertible Class A Preferred Stock.... Principal and interest requirements are
GM first provided retiree health care benefits to UAW employees in 1961. In the fall of 2007, after a short strike, the UAW and GM reached an agreement to end that coverage. The key terms and effects of the agreement are as follows:1. The agreement relates to approximately \($46.7\) billion of the
The following information pertains to Seda Company’s pension plan:Required:If no change in actuarial estimates occurred during 2008, how much would Seda’s projected benefit obligation be at December 31, 2008? Actuarial estimate of projected benefit obligation at 1/1/08 $72,000 Service cost for
At December 31, 2008, Kerr Corporation’s pension plan administrator provided the following information:Required:What amount of the pension liability should be shown on Kerr’s December 31, 2008 balance sheet? Fair value of plan assets Accumulated benefit obligation Projected benefit obligation
On January 2, 2008, Loch Company established a defined benefit plan covering all employees and contributed \($1,000,000\) to the plan. At December 31, 2008, Loch determined that the 2008 service and interest costs totaled \($620,000\). The expected and the actual rate of return on plan assets for
Mary Abbott is a long-time employee of Love Enterprises, a manufacturer and distributor of farm implements. Abbott plans to retire on her 65th birthday (January 1, 2013) five years from today. Her current salary is \($48,000\) per year, and her projected salary for her last year of employment is
The following information pertains to Gali Company’s defined benefit pension plan for 2008:Required: What was the dollar amount of actual return on Gali Company’s plan assets in 2008? Fair value of plan assets, beginning of year Fair value of plan assets, end of year Employer contributions
The following information pertains to Kane Company’s defined benefit pension plan:Kane has no net actuarial gains or losses in AOCI.Required:In its December 31, 2008 balance sheet, what amount should Kane report as a pension asset (liability)? Balance sheet asset, 1/1/08 AOCI-prior service cost,
Dell Company adopted a defined benefit pension plan on January 1, 2008. Dell amortizes the initial prior service cost of $1,334,400 over 16 years. It assumes a 7% discount rate and an 8% expected rate of return. The following additional data are available for 2008:Required:Compute the pension asset
On January 1, 2008, East Corporation adopted a defined benefit pension plan. At plan inception, the prior service cost was \($60,000\). In 2008, East incurred service cost of \($150,000\) and amortized \($12,000\) of prior service cost. On December 31, 2008, East contributed \($160,000\) to the
Nome Company sponsors a defined benefit plan covering all employees. Benefits are based on years of service and compensation levels at the time of retirement. Nome has a September 30 fiscal year-end. It determined that as of September 30, 2008, its ABO was \($320,000\), its PBO was \($380,000\),
Hukle Company has provided the following information pertaining to its postretirement plan for 200%:Required:Calculate Hukle Company’s 2008 net postretirement benefit cost. Service cost Benefit payment made at 12/31/08 Interest on accumulated postretirement benefit obligation Prior service cost
The following information pertains to Lee Corporation's defined benefit pension plan for 2008:Required:Determine the pension expense that Lee Corporation would include in its 2008 net income. Service cost Actual and expected return on plan assets Amortization of prior service costs Interest on
Bostonian Company provided the following information related to its defined benefit pension plan for 2008:Required:1. What amount of pension expense should Bostonian report for 2008?2. What is the fair value of plan assets at December 31, 2008?3. What dollar amount of return on plan assets was
Cummings, Inc. had the following reconciliation at December 31, 2008:The following assumptions are being used for the pension plan in 2009:Required:1. Compute pension expense for 2009.2. Compute the fair value of plan assets at December 31, 2009.3. Compute the PBO at December 31, 2009.4. Compute
Jones Company has a postretirement benefit (health care) plan for its employees. On January 1, 2008, the balance in the Accumulated postretirement benefit obligation account was \($300\) million. The assumed discount rate-for purposes of determining postretirement obliga- tions and expenses is 8%.
Zeff Manufacturing provides the following information about its postretirement health care plan for 2008:Required:1. Determine Zeff’s postretirement health care expense in 2008.2. Determine the fair value of plan assets at December 31, 2008.3. Determine the APBO amount at December 31, 2008.
Bonny Corp. has a defined benefit pension plan for its employees who have an average remaining service life of 10 years. The following information is available for 2008 and 2009 |related to the pension plan:Bonny Corp. had no beginning balance in its AOCI—net actuarial (gain) loss on January 1,
At January 1, 2008, Milo Co.’s projected benefit obligation is \($300,000\), and the fair value of its pension plan assets is \($340,000\). The average remaining service period of Milo’s employees is 10 years. The following additional information is available for Milo’s net actuarial gains
At January 1, 2008, Archer Co.’s PBO is \($500,000\) and the fair value of its pension plan assets is \($630,000\). The average remaining service period of Archer’s employees is 12 years. The AOCI~net actuarial loss (gain) at January 1, 2008 is $(70,000). The following additional information is
George Corporation has a defined benefit pension plan for its employees. The following information is available for 2008:Required:1. What was the January 1, 2008 fair value of the plan assets?2. What is the expected dollar return on plan assets for 2008?3. What amount of pension expense should
On January 1, 2008, Cello Co. established a defined benefit pension plan for its employees. At January 1, 2008, Cello estimated the service cost for 2008 to be \($45,000\). At January 1, 2009, it estimated 2009 service cost to be \($49,000\). On the plan inception date, prior service credit was
The following information pertains to Sparta Company's defined benefit pension plan:Service cost for 2008 was \($90,000\). No contributions were made or benefits paid during the year. Sparta’s Accrued pension liability was \($8,000\) at January 1, 2008. Sparta uses the straightline method of
Turner, Inc. provides a defined benefit pension plan to its employees. The company has 150 employees. The average remaining service life of employees is 10 years. The AOCI—net actuarial (gain) loss was zero at December 31, 2008. Turner uses a market-related (smoothed)value to compute expected
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