The projected benefit obligation was $460 million at the beginning of the year. Service cost for the year was $25 million. At the end of the year, pension benefits paid by the trustee were $21 million and there were no pension-related other comprehensive income accounts requiring amortization. The actuaries discount rate was 5%.

Answers

Answer 1
Answer:

Answer:

The question is not complete:

Here is the complete question:

The projected benefit obligation was $460 million at the beginning of the year. Service cost for the year was $25 million. At the end of the year, pension benefits paid by the trustee were $21 million and there were no pension-related other comprehensive income accounts requiring amortization. The actuaries discount rate was 5%. The actual return on plan assets was $24 million although it was expected to be only $23 million.

What was the pension expense for the year?

Here is the answer: The pension expense is $25 million.

Explanation:

Pension is the form of defined benefit contribution plan which require employers to make certain periodic contribution on behalf of employees. This contribution is reported as an expense in the income statement if even though the benefit has not been enjoyed by the employees. To determine the value of this expenses to be included in the income statement, the components of the pension expenses are relevant.

Components of pension expense are service cost, interest cost, return on plan asset, amortization of prior service costs and gain or loss from change in asset value.

Here is the determination of the pension expense as required by the question.

                                                                            $`M

Service cost                                                          25

Interest ($460,000,000*5%)                               23

Expected return on plan asset                           (23)

Amortization of prior service costs                       -

Gain or loss in change in value                           -

Pension expense                                                 25


Related Questions

A. The August 31 balance shown on the bank statement is $9,799. b. There is a deposit in transit of $1,247 at August 31. c. Outstanding checks at August 31 totaled $1,870. d. Interest credited to the account during August but not recorded on the company's books amounted to $115. e. A bank charge of $37 for checks was made to the account during August. Although the company was expecting a charge, the amount was not known until the bank statement arrived. f. In the process of reviewing the canceled checks, it was determined that a check issued to a supplier in payment of accounts payable of $625 had been recorded as a disbursement of $367. g. The August 31 balance in the general ledger Cash account, before reconciliation, is $9,356.Required: Prepare the adjusting journal entry that should be prepared to reflect the reconciling items.
Your company assembles five different models of a motor scooter that is sold in specialty stores in the United States. The company uses the same engine for all five models. You have been given the assignment of choosing a supplier for these engines for the coming year. Due to the size of your warehouse and other administrative restrictions, you must order the engines in lot sizes of 1,000 units. Because of the unique characteristics of the engine, special tooling is needed during the manufacturing process for which you agree to reimburse the supplier. Your assistant has obtained quotes from two reliable engine suppliers and you need to decide which to use. The following data have been collected:Requirements (annual forecast) 12,000 unitsWeight per engine 22 poundsOrder processing cost $125 per orderInventory carry cost 20 percent of the average value of inventory per yearAssume that half of lot size is in inventory on average (1,000/2 = 500 units).Two qualified suppliers have submitted the following quotations:ORDER QUANTITY SUPPLIER 1 UNIT PRICE SUPPLIER 2 UNIT PRICE1 to 1,499 units/order $510.00 $505.001,500 to 2,999 units/order 500.00 505.003,000 + units/order 490.00 488.00Tooling costs $22,000 $20,000Distance 125 miles 100 milesYour assistant has obtained the following freight rates from your carrier:Truckload (40.000 lbs. each load): $0.80 per ton-mileLess-than-truckload: $1.20 per ton-mileRequired:a. Calculate the total cost for each supplier.b. Which supplier would you select?c. If you could move the lot size up to ship in truckload quantities, calculate the total cost for each supplier.d. Would your supplier selection change?
Richards Corporation uses the weighted-average method of process costing. The following information is available for October in its Fabricating Department: Units: Beginning Inventory: 86,000 units, 70% complete as to materials and 25% complete as to conversion. Units started and completed: 262,000. Units completed and transferred out: 348,000. Ending Inventory: 33,000 units, 40% complete as to materials and 10% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $37,200. Costs in beginning Work in Process - Conversion: $79,700. Costs incurred in October - Direct Materials: $646,800. Costs incurred in October - Conversion: $919,300. Calculate the equivalent units of conversion.
People want information communicated quickly and clearly. To make your writing more concise and understandable, avoid flabby expressions, long lead-ins, and unnecessary fillers.a. For the following sentence, choose the best revision.1. I am sending you this letter to inform you that we have experienced an unexpected surprise within our expense sheet, but we are positively certain we will solve it.A) We need to inform you that we have experienced an unexpected surprise with our expense sheet, but we are midway to an end result.B) We have identified a problem with our expense sheet, but we will solve it.C) I am sending you this letter to inform you that we have a problem with our expense sheet, but we are positively certain we have a solution.
Jordan (single, age 30), a real estate broker (self-employed), had the following income and expenses: Commission income 180,000 Medical insurance premium paid for his staff 10,000 Office staff salary expense 40,000 Medical insurance premium paid for himself 7,000 Office rental expense 30,000 Unreimbursed medical expenses paid for himself 5,000 Which of the following statement is correct? A. Jordan will report $93,000 as his business income (from Schedule C) and his AGI is $88,000. B. Jordan will report $100,000 as his business income (from Schedule C) and his AGI is 93,000. C. Jordan will report $110,000 as his business income (from Schedule C) and his AGI is $95,870. D. Jordan will report $100,000 as his business income (from Schedule C) and his AGI is $80,935. E. Jordan will report $100,000 as his business income (from Schedule C) and his AGI is $85,935.

Of the following groups, which benefits most from a government price support program that establishes a floor price for an agricultural product that is higher than the product's market clearing price? Select one: a. Consumers, who purchase more units of the product than they did before the price support program was implemented

b. Taxpayers, who no longer must provide funds to purchase surplus units of the product once the price support program is in place

c. The government, which receives subsidy payments from producers that are required to sell more of the product at a higher price under the government's program

d. Producers, who earn a higher price on the sale of each unit and also sell more units, thereby unambiguously earning higher revenues

Answers

Answer:

d. Producers, who earn a higher price on the sale of each unit and also sell more units, thereby unambiguously earning higher revenues

Explanation:

A government price support program is when the government impose a price limit on a product to control the price of the product i.e price floor, and also the purchase of any surplus. The price floor and the purchase of any surplus for the product encourages the producers to produce more of the product.

Since price floor must be higher than the equilibrium price for it to be effective, the producers of the agricultural product earn more by selling in units and also earn more for selling any surplus to the government.

Running vertically down the market-product grid, each column represents an opportunity for efficiency in A. A product grouping. B. supplier synergies. C. a market segment. D. research and development

Answers

Answer: (D) Research and development

Explanation:

In the product synergy system, the each column representing about the opportunity for the efficiency in the research and the development.

The product synergy is one of the concept that helps in explain about the holistic view of an organization where the various types of material and also the energy are get exchange from one unit to another.

The research and the development plays an important role in the industry as it helps in introducing the new innovated products and the services in the market and maintaining the organizational productivity and the bottom line.  

 Therefore, Option (D) is correct answer.

Stanley Roper has $2,300 that he is looking to invest. His brother approached him with an investment opportunity that could give Patrick $4,800 in 4 years. What interest rate would the investment have to yield in order for Stanley’s brother to deliver on his promise? (Answer needs to be stated as a decimal. For example: .1192) Round to four decimal places.

Answers

Answer:

20.19%

Explanation:

The computation is shown below:

As we know that

Future value = Present value × (1 + rate)^number of years

where,

Present value = $2,300

Future value = $4,800

Time period = 4 years

So, the interest rate is

$4,800 = $2,300 × (1 + rate)^4

2.086957 = (1 + rate)^4

So after solving this, the interest rate is 20.19%

On January 1, 2016, Jacob Inc. purchased a commercial truck for $48,000 and uses the straight-line depreciation method. The truck has a useful life of eight years and an estimated residual value of $8,000. On December 31, 2017, Jacob Inc. sold the truck for $43,000. What amount of gain or loss should Jacob Inc. record on December 31, 2017? A. Gain, $22,000.
B. Gain, $5,000.
C. Loss, $3,000.
D. Loss, $18,000.

Answers

Answer:

The correct answer is B: gain $5000

Explanation:

Giving the following information:

On January 1, 2016, = commercial truck for $48,000.

straight-line depreciation method.

useful life of eight years.

residual value of $8,000.

On December 31, 2017, Jacob Inc. sold the truck for $43,000.

Depreciation expense per year= (Purchase value - residual value)/8

Depreciation expense per year= (48000-8000)/8=5000

Accumulated depreciation year 2= 5000*2= 10000

To calculate the gain or loss we need to use the following formula:

Gain/loss= price value - book value

Gain/loss= price value - (purchase price - accumulated depreciation)

Gain/loss= 43000 - (48000- 10000)= 5000 gain

If your firm has a capital structer of 60% debt and 40% common equity with the debt having cost of 10% and the equity of 17% what is the firm weight average cost of capital

Answers

Answer:

12.8%

Explanation:

Data provided in the question:

Debt = 60% = 0.60

Equity = 40% = 0.40

Cost of debt, kd = 10% = 0.10

cost of equity, ke = 17% = 0.17

Now,

firm weight average cost of capital

= ( ke × weight of equity ) + ( kd × weight of debt )

on substituting the respective values, we get

= ( 0.17 × 0.40 ) + ( 0.10 × 0.60 )

= 0.068 + 0.06

= 0.128

or

= 0.128 × 100%

= 12.8%

Colicchio Corporation acquired two inventory items at a lump-sum cost of $60,000. The acquisition included 3,000 units of knife X001, and 3,000 units of knife X002. X001 normally sells for $20 per unit, and X002 for $10 per unit. If Colicchio sells 1,000 units of X002, what amount of gross profit should it recognize?

Answers

Answer:

Explanation:

X001 Sales volum = 3000*$20 = $60,000

X002 Sales volum = 3000*$10 = $30,000

Total $90,000

Allocated to X002 based on sales volum is 33.33% (30,000/90,000) of the 60,000, which is $20,000

Cost per unit of X002 is $6.67 ($20,000/3,000). Sells 1000 units, $6.67*1000 = $6670.

Gross profit = Revenue $10,000 - Cost $6670 = $3330 in gross profit

Answer:

$3,333

Explanation:

Using the maximum revenue achievable as cost allocation basis, we can then proceed as follows:

Knife X001 maximum achievable revenue = $20 × 3,000 = $60,000

Knife X001 achievable maximum revenue = $10 × 3,000 = $30,000

Total maximum achievable revenue = $60,000 + $30,000

Weight of Knife X001 = 60,000/90,000 = 0.67

Weight of Knife X002 = 30,000/90,000 = 0.33

Total cost allocated to Knife X001 = 0.67 × 60,000 = $40,000

Total cost allocated to Knife X002 = 0.33 × 60,000 = $30,000

Unit cost of Knife X001 = $40,000/3,000 = $13.33

Unit cost of Knife X002 = $20,000/3,000 = $6.67

Revenue from Knife X002 1,000 units sold = $10 × 1,000 = $10,000

Cost of Knife X002 1,000 units sold = $6.67 × 1,000 = $6,667

Gross profit from Knife X002 1,000 units sold = $10,000 - $10,000 – $6,667 = $3,333.

Therefore, amount of gross profit which Colicchio Corporation should recognize is $3,333 if 1,000 units of Knife X002 is sold.

Other Questions