Q1. AMR Corporation (parent company of American Airlines) reported the following (in millions).
Service cost - $366
Interest on P.B.O. - 737
Return on plan assets - 593
Amortization of prior service cost - 13
Amortization of net loss - 154
Compute AMR Corporation's pension expense.
Q2. Ivanhoe Corporation amended its pension plan on January 1, 2017, and granted $166,000 of prior service costs to its employees. The employees are expected to provide 2,000 service years in the future, with 340 service years in 2017.
Compute prior service cost amortization for 2017.
Q3. At December 31, 2017, Blossom Corporation had a projected benefit obligation of $551,500, plan assets of $313,400, and prior service cost of $134,800 in accumulated other comprehensive income.
Determine the pension asset/liability at December 31, 2017.
Q4. Bridgeport Corporation has the following balances at December 31, 2017.
Projected benefit obligation - $2,357,000
Plan assets at fair value - 1,791,000
Accumulated OCI (PSC) - 1,182,000
What is the amount for pension liability that should be reported on Bridgeport's balance sheet at December 31, 2017?
Q5. Monty Corp. has three defined benefit pension plans as follows.
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Pension Assets(at Fair Value)
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Projected Benefit Obligation
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Plan X
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$638,000
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$491,000
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Plan Y
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980,000
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751,000
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Plan Z
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588,000
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640,000
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How will Monty report these multiple plans in its financial statements?
Q6. Marigold Corporation has the following information available concerning its postretirement benefit plan for 2017.
Service cost - $39,200
Interest cost - 46,700
Actual and expected return on plan assets - 26,700
Compute Marigold's 2017 postretirement expense.
Q7. Kingbird Company provides the following information about its defined benefit pension plan for the year 2017.
Service cost - $91,100
Contribution to the plan - 103,300
Prior service cost amortization - 9,400
Actual and expected return on plan assets - 65,100
Benefits paid - 40,500
Plan assets at January 1, 2017 - 650,700
Projected benefit obligation at January 1, 2017 - 694,300
Accumulated OCI (PSC) at January 1, 2017 - 151,900
Interest/discount (settlement) rate - 10 %
Prepare a pension worksheet inserting January 1, 2017, balances, showing December 31, 2017. (Enter all amounts as positive.)
Q8. Nash Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2017 in which no benefits were paid.
1. The actuarial present value of future benefits earned by employees for services rendered in 2017 amounted to $55,500.
2. The company's funding policy requires a contribution to the pension trustee amounting to $136,360 for 2017.
3. As of January 1, 2017, the company had a projected benefit obligation of $894,500, an accumulated benefit obligation of $806,900, and a debit balance of $396,000 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $600,000 at the beginning of the year. The actual and expected return on plan assets was $53,500. The settlement rate was 8%. No gains or losses occurred in 2017 and no benefits were paid.
4. Amortization of prior service cost was $49,800 in 2017. Amortization of net gain or loss was not required in 2017.
(a) Determine the amounts of the components of pension expense that should be recognized by the company in 2017.
Q9. Sweet Co. provides the following information about its postretirement benefit plan for the year 2017.
Service cost - $ 49,200
Contribution to the plan - 10,600
Actual and expected return on plan assets - 12,100
Benefits paid - 21,100
Plan assets at January 1, 2017 - 107,000
Accumulated postretirement benefit obligation at January 1, 2017 - 332,500
Discount rate - 10 %
Compute the postretirement benefit expense for 2017.
Q10. Nash Inc. provides the following information related to its postretirement benefits for the year 2017.
Accumulated postretirement benefit obligation at January 1, 2017 - $651,300
Actual and expected return on plan assets - 30,600
Prior service cost amortization - 19,600
Discount rate - 11 %
Service cost - 87,700
Compute postretirement benefit expense for 2017.
Q11. Bonita Co. provides the following information about its postretirement benefit plan for the year 2017.
Service cost - $92,700
Prior service cost amortization - 3,000
Contribution to the plan - 50,600
Actual and expected return on plan assets - 64,500
Benefits paid - 37,100
Plan assets at January 1, 2017 - 719,300
Accumulated postretirement benefit obligation at January 1, 2017 - 745,800
Accumulated OCI (PSC) at January 1, 2017 - 92,900 Dr.
Discount rate - 8%
Prepare a worksheet inserting January 1, 2017, balances, showing December 31, 2017, balances, and the journal entry recording postretirement benefit expense.
Attachment:- Assignment.rar