A company provides the following information related to its defined benefit pension plan for the current...
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A company provides the following information related to its defined benefit pension plan for the current year: PBO balance, January 1 PBO balance, December 31 Plan Assets balance, January 1 Plan Assets balance, December 31 Service cost Interest cost Actual return on plan assets Benefits paid to retirees Contributions to plan Assume that there were no changes in plan assumptions during the year (and thus no gain or loss on the PBO), and no amendments to the pension plan (and thus no prior service cost incurred). Required: 1. Calculate the amount of benefits paid to retirees. $324,000 $327,370 $270,000 $290,715 $27,000 $16,200 $20,115 ??? ??? 2. Calculate employer contributions to the plan. (Click to select) (Click to select) A company that began operations on January 1, 2021 had pretax accounting income of $7,900,000 and taxable income of $11,440,000 for the year ended December 31, 2024. The 2024 tax rate was 25%. The only difference between book and taxable income is estimated warranty costs. Expected warranty payments and scheduled enacted tax rates are as follows: Expected warranty payments $ 1.180,000 2025 2026 2027 2028 $ 590,000 $ 590.000 $ 1,180,000 Enacted tax rate 30% 30% 30% 35% Required: 1. Prepare one compound journal entry to record the company's income taxes for the year 2024. 2. In recording income taxes for 2025, the company will reduce the deferred tax account by what amount? A company provides the following information related to its defined benefit pension plan for the current year: PBO balance, January 1 PBO balance, December 31 Plan Assets balance, January 1 Plan Assets balance, December 31 Service cost Interest cost Actual return on plan assets Benefits paid to retirees Contributions to plan Assume that there were no changes in plan assumptions during the year (and thus no gain or loss on the PBO), and no amendments to the pension plan (and thus no prior service cost incurred). Required: 1. Calculate the amount of benefits paid to retirees. $324,000 $327,370 $270,000 $290,715 $27,000 $16,200 $20,115 ??? ??? 2. Calculate employer contributions to the plan. (Click to select) (Click to select) A company that began operations on January 1, 2021 had pretax accounting income of $7,900,000 and taxable income of $11,440,000 for the year ended December 31, 2024. The 2024 tax rate was 25%. The only difference between book and taxable income is estimated warranty costs. Expected warranty payments and scheduled enacted tax rates are as follows: Expected warranty payments $ 1.180,000 2025 2026 2027 2028 $ 590,000 $ 590.000 $ 1,180,000 Enacted tax rate 30% 30% 30% 35% Required: 1. Prepare one compound journal entry to record the company's income taxes for the year 2024. 2. In recording income taxes for 2025, the company will reduce the deferred tax account by what amount?
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Answer rating: 100% (QA)
PART1 1 To calculate the benefits paid to retirees we need to use the formula Benefits paid Beginning PBO balance Service cost Interest cost Actual re... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0470616314
IFRS edition volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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