The following information pertains to Garfield Co.s defined benefit pension plan for the current year: The fair
Question:
The following information pertains to Garfield Co.’s defined benefit pension plan for the current year:
The fair value of plan assets 1/1 $350,000
The fair value of plan assets at 12/31 $525,000
Employer contributions of $110,000
Benefits paid $85,000
What amount was Garfield’s actual return on plan assets?
$65,000
$175,000
$150,000
$260,000
None of the above
Jones sponsors a defined-benefit pension plan. The following data relates to the operation of the plan for 20XX.
Service Cost $200,000
Contributions to the plan $220,000
Actual return on plan assets $180,000
Projected benefit obligation (beginning of the year) $2,400,000
The market-related and fair value of plan assets (beginning of the year) $1,600,000
The expected return on plan assets and the settlement rate were both 10%. The amount of pension expense reported for 20XX is
$260,000
$440,000
$280,000
$200,000
None of the above
Sellwood Co. has a defined benefit plan. The fair value of the plan assets at the beginning of the year is $30mill. The projected benefit obligation at the beginning of the year is $28mill. The Company had $4mill in unrecognized actuarial losses in Accumulated Other Comprehensive Income as of the beginning of the year. Assume weighted average remaining service life of employees covered under the plan is four years. The pension expense recognized for the fiscal year was $1,200,000. The expected return on plan assets was $500,000. The interest cost on the benefit obligation for the year was $1,100,000. What was the Service Cost component of the pension expense?
$250,000
$300,000
$350,000
$500,000
None of the above
Kraft Corporation declares and distributes a cash dividend that is a result of current earnings. How will the receipt of those dividends affect the investment account of the investor under each of the following accounting methods?
Fair Value Method Equity Method
No Effect Decrease
Increase Decrease
No Effect No Effect
Decrease No Effect
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon