Scott Ward - Week 5

Scott Ward - Week 5 - $11,000 EXERCISE 22-1 (10-15 minutes)...

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EXERCISE 20-1 (5-10 minutes) Exercise 20-1 (5-10 minutes) (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 2007 $106,000 (b) Pension Expense $106,000 Cash $95,000 Prepaid/Accrued Pension Cost
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Unformatted text preview: $11,000 EXERCISE 22-1 (10-15 minutes) (a) The net income to be reported in 2008, using the retrospective approach, would be computed as follows: Income before income tax $700,000 Income tax $245,000 Net income $455,000 (b) Construction in Progress $190,000 Deferred Tax Liability $66,500 Retained Earnings $123,500...
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Scott Ward - Week 5 - $11,000 EXERCISE 22-1 (10-15 minutes)...

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