FRDQuiz_PensionSample

FRDQuiz_PensionSample - Name_ Financial Reporting and...

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Financial Reporting and Disclosure- Quiz 1. Northeast Inc. reported the following pension information: Beginning balance sheet position $10,000 credit Service cost $12,000 Expected return on plan assets 60,000 Interest cost 30,000 What is the company’s ending balance sheet position? a. $8,000 pension credit b. $28,000 pension credit c. $8,000 pension debit d. $28,000 pension debit e. Other ____________ _______________ 2. DeTowe Co. reports the following pension information. Beginning fair value of plan assets $100,000 Employer contributions to the pension plan $ 5,000 Beginning pension trust obligation $ 70,000 Service cost $ 15,000 Discount rate 5% Expected return on assets 11% Payments to retirees $ 17,000 a. What is the ending value of the company’s pension plan obligations? b. DeTowe’s pension assets generated a $13,000 return during the year. What is the company’s ratio of pension assets to pension obligations at year end? 1
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This note was uploaded on 05/06/2008 for the course FERF drtgGDR taught by Professor Fr during the Spring '08 term at NYU.

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FRDQuiz_PensionSample - Name_ Financial Reporting and...

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