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     85.     The amount of unrecognized net gain amortized in 2008 is
a.     $15,300.
b.     $15,000.
c.     $11,626.
d.     $9,977.

     86.     Presented below is information related to Bitner Manufacturing Company as of December 31, 2008:
Projected benefit obligation in excess of plan assets     $900,000
Unrecognized net gain     300,000
Unrecognized prior service cost     405,000
The amount to be reported as accrued pension cost at the end of 2008 is
a.     $ -0-.
b.     $1,005,000.
c.     $795,000.
d.     $900,000.


Use the following information for questions 87 and 88.

Barkley Corporation received the following report from its actuary at the end of the year:
                    December 31, 2007     December 31, 2008
     Projected benefit obligation     $1,600,000     $1,800,000
     Market-related asset value     1,400,000     1,420,000
     Accumulated benefit obligation     1,300,000     1,480,000
     Fair value of pension plan assets     1,380,000     1,440,000
Prepaid pension cost     80,000     100,000
Assume that no prepaid or accrued pension cost exists on January 1, 2007.

     87.     The amount reported as the total pension liability at December 31, 2007 is
a.     $ -0-.
b.     $200,000.
c.     $220,000.
d.     $300,000.

     88.     The amount reported as the total pension liability at December 31, 2008 is
a.     $ -0-.
b.     $140,000.
c.     $40,000.
d.     $60,000.

Use the following information for questions 89 through 92.

The following information relates to Haywood, Inc.:
                     For the Year Ended December 31,
                     2007           2008     
Plan assets (at fair value)     $1,260,000     $1,824,000
Pension expense     570,000     450,000
Accumulated benefit obligation     1,620,000     1,884,000
Annual contribution to plan     600,000     450,000
Unrecognized prior service cost     480,000     420,000

Prior to 2007, cumulative pension expense recognized equaled cumulative contributions.

     89.     The amount reported as the total liability for pensions on the December 31, 2007 balance sheet is
a.     $ -0-.
b.     $30,000.
c.     $360,000.
d.     $390,000.

     90.     The amount reported as an intangible asset on the December 31, 2007 balance sheet is
a.     $ -0-.
b.     $390,000.
c.     $360,000.
d.     $30,000.


     91.     The amount reported as the total liability for pensions on the December 31, 2008 balance sheet is
a.     $ -0-.
b.     $60,000.
c.     $3960,000.
d.     $30,000.

     92.     The amount reported as an intangible asset on the December 31, 2008 balance sheet is
a.     $ -0-.
b.     $60,000.
c.     $90,000.
d.     $30,000.

Questions 93 and 94 relate to the information which follows:

Presented below is information related to Kluth Inc. as of December 31, 2008.
Unrecognized gains and losses     $ 90,000
Projected benefit obligation     3,600,000
Accumulated benefit obligation     3,420,000
Vested benefits     1,620,000
Market-related asset value     3,330,000
Plan assets (at fair value)     3,384,000
Unrecognized prior service cost     -0-

Assume that cumulative pension expense equaled pension funding through 2008.

     93.     The amount reported as the total pension liability on Kluth's balance sheet at December 31, 2008 is as follows:
a.     $ -0-.
b.     $36,000.
c.     $90,000.
d.     $216,000.

     94.     The amount reported as an intangible asset on Kluth's balance sheet at December 31, 2008 is as follows:
a.     $ -0-.
b.     $36,000.
c.     $90,000.
d.     $216,000.

     95.     Coble Company has a defined-benefit plan. At the end of 2008, it has determined the following information related to its pension plan:
Projected benefit obligation     $700,000
Market-related asset value of pension plan     600,000
Accumulated benefit obligation     660,000
Accrued pension cost     35,000
Fair value of pension plan assets     610,000

The amount of the total pension liability that is reported in Coble's balance sheet at the end of 2008 is
a.     $100,000.
b.     $60,000.
c.     $25,000.
d.     $50,000.

     96.     Presented below is pension information related to Marten Company as of December 31, 2008:
Accumulated benefit obligation     $3,000,000
Projected benefit obligation     3,500,000
Market-related asset value     2,400,000
Plan assets (at fair value)     2,500,000
Accrued pension cost     300,000
Unrecognized prior service cost     100,000
The amount to be reported as Intangible Asset—Deferred Pension Cost as of December 31, 2008 is
a.     $500,000.
b.     $1,000,000.
c.     $200,000.
d.     $100,000.

Use the following information for questions 97 and 98.

On January 1, 2008, Nen Co. has the following balances:
Projected benefit obligation     $4,200,000
Fair value of plan assets     3,750,000

The settlement rate is 10%. Other data related to the pension plan for 2008 are:
Service cost     $240,000
Amortization of unrecognized prior service costs     54,000
Contributions     270,000
Benefits paid     225,000
Actual return on plan assets     264,000
Amortization of unrecognized net gain     18,000

     97.     The balance of the projected benefit obligation at December 31, 2008 is
a.     $4,572,000.
b.     $4,590,000.
c.     $4,629,000.
d.     $4,635,000.

     98.     The fair value of plan assets at December 31, 2008 is
a.     $3,531,000.
b.     $3,789,000.
c.     $4,059,000.
d.     $4,284,000.


Use the following information for 99 and 100.

Spencer Company has the following information at December 31, 2008 related to its pension plan:
Projected benefit obligation     $4,000,000
Accumulated benefit obligation     3,200,000
Plan assets (fair value)     2,000,000
Accrued pension cost     300,000

     99.     The amount of additional pension liability Spencer Company would recognize at December 31, 2008 is
a.     $300,000.
b.     $900,000.
c.     $1,200,000.
d.     $1,500,000.

     100.     What amount of additional pension liability would be recognized if Spencer Company had prepaid pension cost of $220,000 rather than accrued pension cost of $300,000?
a.     $1,420,000
b.     $1,200,000
c.     $980,000
d.     $220,000

Use the following information for 101 and 102.

     101.     The following pension plan information is for Ladd Company at December 31, 2008.
Projected benefit obligation     $8,400,000
Accumulated benefit obligation     7,500,000
Plan assets (at fair value)     6,150,000
Market-related asset value     6,450,000
Unrecognized prior service cost     540,000
Pension expense for 2008     3,000,000
Contribution for 2008     2,400,000
Prior to 2008, cumulative pension expense equaled cumulative contributions. The amount to be reported as the total liability for pensions on the December 31, 2008 balance sheet is
a.     $2,250,000.
b.     $1,950,000.
c.     $1,350,000.
d.     $1,050,000.

102.     The amount to be reported as Intangible Asset—Deferred Pension Cost on the December 31, 2008 balance sheet is
a.     $1,350,000.
b.     $750,000.
c.     $540,000.
d.     $450,000.

     

*103.     The following facts relate to the Lional Co. postretirement benefits plan for 2008:
Service cost     $170,000
Discount rate     9%
APBO, January 1, 2008     $1,500,000
EPBO, January 1, 2008     $2,000,000
Benefit payments to employees     $115,000
The amount of postretirement expense for 2008 is
a.     $170,000.
b.     $305,000.
c.     $350,000.
d.     $420,000.

     *104.     The following facts relate to the postretirement benefits plan of Ramsey, Inc. for 2008:
Service cost     $680,000
Discount rate     8%
APBO, January 1, 2008 (transition amount)     $4,000,000
EPBO, January 1, 2008     $4,800,000
Average remaining service to full eligibility     20 years
Average remaining service to expected retirement     25 years
The amount of postretirement expense for 2008 is
a.     $840,000.
b.     $1,160,000.
c.     $1,200,000.
d.     $1,224,000.

     *105.     The following facts relate to the Albers Co. postretirement benefits plan for 2008:
Service cost     $126,000
Discount rate     10%
EPBO, January 1, 2008      $1,095,000
APBO, January 1, 2008     $900,000
Actual return on plan assets in 2008     $31,500
Expected return on plan assets in 2008     $24,000
The amount of postretirement expense for 2008 is
a.     $184,500.
b.     $192,000.
c.     $211,500.
d.     $216,000.

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