ACT_3392_Chp_20_Homework_Solutions

ACT_3392_Chp_20_Homework_Solutions - Intermediate...

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Intermediate Accounting II Amanda N. Paul, CPA, MBA Troy University
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Chapter 20 EXERCISE 20-1 (a) Computation of pension expense: Service cost $ 60,000 Interest cost ($500,000 X .10) 50,000 Expected return on plan assets (12,000) Unrecognized prior service cost amortization 8,000 Pension expense for 2010 $106,000 (b) Pension Expense 106,000 Cash 95,000 Pension Asset /Liability 3,000 Other Comprehensive Income (PSC) 8,000
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EXERCISE 20-2 Computation of pension expense: Service cost $ 90,000 Interest cost ($800,000 X 10%) 80,000 Expected return on plan assets (64,000) Prior service cost amortization 10,000 Pension expense for 2011 $116,000
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EXERCISE 20-5 Computation of Service-Years Year Ed Paul Mary Dave Caroline Total 2011 1 1 1 1 1 5 2012 1 1 1 1 1 5 1 1 1 1 1 1 5 2014 1 1 1 1 4 2015 1 1 1 3 2016 1 1 1 3 3 4 6 6 6 25 Cost per service-year: $60,000 ÷ 25 = $2,400
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Computation of Annual Prior Service Cost Amortization Year Total Cost Annual Service-Years Per Service-Year
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This note was uploaded on 04/07/2009 for the course ACT 3392 taught by Professor Paul during the Spring '08 term at Troy.

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ACT_3392_Chp_20_Homework_Solutions - Intermediate...

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