Chap017 - Student Name Instructor Class McGraw-Hill/Irwin...

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Student Name: Instructor Class: McGraw-Hill/Irwin Problem 17-6 STANLEY-MORGAN INDUSTRIES Calculations ($ in 000s) 1. Projected Benefit Obligation Balance, January 1, 2011 $ - Service cost 150 Interest cost - Benefits paid - Balance, December 31, 2011 $ 150 «- Correct! Service cost 200 Interest cost 9 Benefits paid - Balance, December 31, 2012 $ 359 «- Correct! 2. Plan Assets Balance, January 1, 2011 $ - Actual return on plan assets - Contributions 2011 160 Benefits paid - Balance, December 31, 2011 $ 160 «- Correct! Actual return on plan assets 16 Contributions 2012 170 Benefits paid - Balance, December 31, 2012 $ 346 «- Correct! 3. Pension Expense - 2011 Service cost $ 150 Interest cost - Expected return on the plan assets - Pension expense $ 150 «- Correct! Pension Expense - 2012 Service cost $ 200 Interest cost 9 Expected return on the plan assets (16) Pension expense $ 193 «- Correct! 4. Net Pension Asset/Liability PBO $ 150 Plan assets 160 Net pension asset, Dec. 31, 2011 $ 10 «- Correct! PBO $ 359 Plan assets 346 Net pension liability, Dec. 31, 2012 $ 13 «- Correct!
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Given Data P17-06: STANLEY-MORGAN INDUSTRIES Expected plan asset earnings 10% rate of return Recommended discount rate 6% Service cost, 2011 $ 150,000 Service cost, 2012 $ 200,000 Year-end funding, 2011 $ 160,000 Year-end funding, 2012 $ 170,000
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Student Name: Instructor Class: McGraw-Hill/Irwin Problem 17-12 KOLLAR COMPANY Pension Expenses ($ in millions) Requirement 1: 2011 2012 Service cost $ 520.0 $ 570.0 Interest on PBO* 220.0 256.0 Expected return** (192.0) (232.8)
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