Question: Kernal Industries Ltd has a defined benefit superannuation plan where the present value of the accrued benefits on 1 January 2020 was $1 700 000

Kernal Industries Ltd has a defined benefit superannuation plan where the present value of the accrued benefits on 1 January 2020 was $1 700 000 and on 31 December 2020 was $1 820 000. During 2020 Kernal Industries Ltd paid $160 000 to the plan. On 1 January 2020 the net market value of the plans assets was $730 000 and on 31 December 2020 it was $936 000.

Required: Using the net-worth method, determine the superannuation expense for the year ended 31 December 2020 to be shown in the Kernal Industries Ltd accounts.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

FL Ltd has a defined benefit superannuation plan for its senior managers. Members of the plan had been entitled to 10% of their average salary for every year of service. The following information is...

You just need to calculate DBO, PPA and pension cost FL Ltd has a defined benefit superannuation plan for its senior managers. Members of the plan had been entitled to 10% of their average salary for...

Topez Ltd provides a defined benefit superannuation plan for its senior managers. The following information is available in relation to the plan. Present value of the defined benefit obligation 1...

Exercise 19-8 Cullumber Limited sponsors a defined benefit pension plan, and follows ASPE. The corporation's actuary provides the follow January 1, 2020 December 31, 2020 $1,500 $1,550 2,400 3,120...

On January 1, 2020, ValDay Company reported the following information in relation to a defined benefit plan: Defined Benefit Obligation Fair Value of Plan Assets Asset Ceiling January 1 3,590,000...

Retiree benefits paid out are less than expected. QUESTION 22 Scallion Company received the following reports of its defined benefit pension plan for the current calendar year PBO Plan assets...

Give Correct answer kudos Flint Company provides the following selected information related to its defined benefit pension plan for 2020. $23,100 Cr. 402,800 10,800 149.300 Pension asset/liability...

the top 3 pics are supporting information. the Bottom 3 are what need to be answered Blossom Company received the following selected information from its pension plan trustee concerning the operation...

the first 2 pictures tie into the third one, which need accounts and numbers. Blossom Company received the following selected information from its pension plan trustee concerning the operation of the...

At the beginning of the year, Ramos Inc. bought three used machines from Santaro Corporation. The machines immediately were overhauled, installed, and started operating. The machines were different;...

In the context of buying center, the person who chooses product requirements, suppliers, or both is known as the: initiator. gatekeeper. user. decider. influencer.

Mutual fund fees that cover advertising and promotional literature are typically referred to as: Back - end loads. Front - end loads. Advertising fees. 1 2 b - 1 charges.

P-1) (100 Pts.) A chemical manufacturing company (CMC) has a contract for the procurement of the neccssaly chemicals from four suppliers. The chemicals purchased from Supplier A are priced at $20...

The service organization We Care is having a Demolition Derby for a fund-raiser. You have been asked to develop a sales message that could be placed in the local newspaper. Add details and be...

Teamwork. Global. Technology. You are a member of your schools Humanities Student Association, which has decided to organize a retired-persons tour to the Black Forest of Germany for its service...

Joseph Dunlap is starting PC Dr., a small business that will make house calls to service computers. Josephs company repairs computers, installs networks, designs special software programs, and...