ACCT 557 Quiz 3
1. (TCO C) Presented below is pension information related to Woods, Inc. for the year 2013.
Service cost $76,000
Interest on projected benefit obligation $47,000
Interest on vested benefits $24,000
Amortization of prior service cost due to increase in benefits $12,000
Expected return on plan assets $18,000
The amount of pension expense to be reported for 2013 is
2. (TCO C) A pension liability is reported when
3. (TCO C) Which of the below listed items is NOT required for post-retirement benefit disclosures based on professional pronouncements?
4. (TCO C) Kathy's Kittens, Inc. has provided the following information for their post-retirement benefits plan for 2013.
Service cost $475,000
Discount rate 8%
APBO, January 1, 2013 $3,800,000
EPBO, January 1, 2013 $4,100,000
Average remaining service to full eligibility 20 years
Average remaining service to expected retirement 25 years
The amount of post-retirement expense for 2013 is
5. (TCO C) On January 1, 2013, Laura's Living Company has the following defined benefit pension plan balances.
Projected benefit obligation $5,700,000
Fair value of plan assets 7,200,000
The interest (settlement) rate applicable to the plan is 10%. On January 1, 2014, the company amends its pension agreement so that service costs of $350,000 are created. Other data related to the pension plan are as follows.
Service costs $150,000 $165,000
Prior service costs amortization $0 $63,000
Contributions (funding) to the plan $168,000 $194,000
Benefits paid $190,000 $220,000
Actual return on plan assets $576,000 $498,000
Expected rate of return on assets 8% 7%
(a) Prepare a pension worksheet for the pension plan for 2013 and 2014.
(b) For 2014, prepare the journal entry to record pension-related amounts.
6. (TCO C) Kasper, Inc....