19-Solutions to Required p19-9

19-Solutions to - PROBLEM 19-9(a Continuity Schedule of Accrued Benefit Obligation 2011 Accrued benefit obligation at beginning of year Annual

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PROBLEM 19-9 (a) Continuity Schedule of Accrued Benefit Obligation: 2011 2012 2013 Accrued benefit obligation at beginning of year Annual service cost Interest cost Benefits paid out Net actuarial loss (gain) Accrued benefit obligation at end of year $ 0 55,000 0 a 8,900 ) $63,900 $ 63,900 85,000 7,029 b (30,000 ) (24,500 ) ) $101,429 $ 101,429 119,000 8,114 c (35,000 ) 84,500 ) $278,043 a No interest is calculated since there was no obligation at the beginning of the year. b $7,029 = $63,900 X 11% c $8,114 = $101,429 X 8% (b) Continuity Schedule of Plan Assets: 2011 2012 2013 Plan assets at beginning of year Expected return on assets Net actuarial gain (loss) Benefits paid out Contributions Plan assets at end of year $ 0 0 a 0 0 50,000 ) $50,000 $ 50,000 4,000 b 1,000 c (30,000 ) 60,000 $85,000 $ 85,000 6,800 d 18,200 (35,000 ) 95,000 ) $170,000 a No interest is calculated since there were no plan assets during the year. b $4,000 = $50,000 X 8% c $1,000 = $85,000 – $50,000 – $4,000 – $60,000 + $30,000 d $6,800 = $85,000 X 8%
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PROBLEM 19-9 (Continued) (c) Pension expense for 2011 consisted only of the service cost component amounting to $55,000. There were no past service cost, net gain or loss, pension assets, or accrued
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This note was uploaded on 10/26/2011 for the course ACCT 3410 taught by Professor Jobs during the Spring '11 term at Kwantlen Polytechnic University.

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19-Solutions to - PROBLEM 19-9(a Continuity Schedule of Accrued Benefit Obligation 2011 Accrued benefit obligation at beginning of year Annual

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