ACCT 320 Hinson 7-2 Pensions and Other Postretirement Benefits

ACCT 320 Hinson 7-2 Pensions and Other Postretirement Benefits

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
ACCT 320 Assignment 7-2 Pensions and Other Postretirement Benefits Jamie Hinson October 24, 2008 P17-1 Projected Benefit Obligation 1. Present value at Retirement is = $240,000 Value = $90,000 1992 _____________________2006 __________________2026 _______________________204 4 Service Period Retirement Span 2. 0.016 X 14 X $90,000 = $20,160 3. Present value (n = 14, i = 7%) $20,160 X 8.74547 = $176,308.68 = ABO
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4. 0.016 X 17 X $100,000 = $27,200 Present value (n = 17, i = 7%) $27,200 X 9.76322 = $265,559.58 P17-6 1. December 31, 2006 Present value (n = 1, i = 6%) $160,000 X 0.94340 = $150,944 December 31, 2007 Present value (n = 2, i = 6%) $170,000 X 1.83339 = $311,676.30 2. December 31, 2006 $160,000 X .10 = $16,000 December 31, 2007 $170,000 X .10 = $17,000
Background image of page 2
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 3. December 31, 2006 Service cost / pension expense = $150,000 December 31, 2007 Service cost / pension expense = $200,000 4. December 31, 2006 $150,000 - $160,000 = ($10,000) December 31, 2007 $200,000 - $170,000 = $30,000 P17-12 1. Beg of 2006 $2,400 Return on plan assets 10% $240 Cash contributions $245,000 Less: retiree benefits ($270,000) Actual return on plan assets = ($22,360) 2. Loss on plan assets (as listed above) = ($22,360) 3. $325,000 - $300,000 = $5,000 service cost during 2006 4. $95,000 - $90,000 = $5,000 pension expense during 2006 5. Average remaining service life of active employees decreased by 30,000 during the year 2006...
View Full Document

This note was uploaded on 09/08/2010 for the course ACCOUNTING 320 taught by Professor Hickman during the Spring '10 term at Heidelberg.

Page1 / 4

ACCT 320 Hinson 7-2 Pensions and Other Postretirement Benefits

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online