Homework Quiz—6

For the year 2011 is service cost 72000 interest on

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Pension information for Woods, Inc. for the year 2011 is: Service cost $72,000 Interest on projected benefit obligation 54,000 Interest on vested benefits 24,000 Amortization of prior service cost due to increase in benefits 18,000 Expected return on plan assets 12,000 The amount of defined benefit pension expense to be reported for 2011 is: $ 2. Kraft, Inc. sponsors a defined-benefit pension plan. The following data is for the operation of Kraft’s plan for the year 2011. Service cost $ 200,000 Contributions to the plan 180,000 Actual return on plan assets 220,000 Projected benefit obligation (beginning of year) 2,400,000 Market-related and fair value of plan assets (beginning of year) 1,600,000 The expected return on plan assets and the settlement rate were both 10%. The amount of pension expense reported for 2011 is: $ Use the following information for Cooper Enterprises for questions 3 through 4. December 31, 2011 Assets and obligations Plan assets (at fair value) $100,000 Accumulated benefit obligation 185,000 Projected benefit obligation 200,000 Other Items Pension asset liability, January 1, 2011 5,000 Contributions 60,000 Accumulated other comprehensive loss 83,950 There were no actuarial gains or losses at January 1, 2011. The average remaining service life of employees is 10 years. 3. The defined benefit pension expense that Cooper Enterprises should report for 2011 is: $ 4. The amount that Cooper should report as its pension liability on its balance sheet as of December 31, 2011 is: $ 3
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5. On January 1, 2011, Newlin Co. has the following balances: Projected benefit obligation $2,000,000 Fair value of plan assets 1,800,000 The settlement rate is 10%. Other data related to the pension plan for 2011 are: Service cost $180,000 Amortization of prior service costs due to increase in benefits 60,000 Contributions 300,000 Benefits paid 105,000 Actual return on plan assets 237,000 Amortization of net gain 18,000 The amount of the projected benefit obligation at December 31, 2011 is: $ 4
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  • Fall '08
  • Staff
  • service cost, benefit obligation, Cooper Enterprises

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