PBO 5 million plan assets 45 million On its balance sheet Tool Company should

Pbo 5 million plan assets 45 million on its balance

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PBO: $5 million; plan assets: $4.5 million. On its balance sheet, Tool Company should showA net pension liability of $500,000A relatively low expected return on plan assets means the employer shouldContribute moreThe following information refers to O’Shea Company’s defined benefit pension plan for the current year. Service cost: $5,000; interest cost: $2,000; amortization of prior service cost: $1,000; amortization of net loss: $500; expected return on plan assets: $3,000. O’Shea Company’s journal entry to record pension-related costs would includeCredit to amortization of net loss—OCI for $500 / debit to pension expense for $5,500 / credit to amortization of prior service cost—OCI for $1,000.Measuring the __________ cost differs between accounting for pensions and for other postretirement benefits due to a difference in the way employees acquire benefits.ServiceCorrectly match the type of postretirement benefit obligation on the left with the correct description. Expected postretirement benefit obligation – the actuary’s estimate of the present value of the total postretirement benefits to be received by plan participants Accumulated postretirement benefit obligation – the portion of the EPBO attributed to employee service to dateThe process of assigning the cost of benefits to the years during which those benefits are earned is referred to asAttribution4
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ACC-309 INTERMEDIATE ACCOUNTING IIITERM 18EW6MOD 2 READING QUESTIONSPlace the steps necessary to calculate the projected benefit obligation in the correct order. 1.Use the pension formula (including future salary levels) to determine retirement benefits earned to date.2.Find the present value of the retirement benefits as of the retirement date3.Find the present value of retirement benefits as of the current date. Which of the following are common benefits that are classified as postretirement benefits other than pensions?Health care plans / dental coverageThe resources a company will use to satisfy the pension obligation are referred to as pension __________ __________.Plan assetsIdentify the components of pension expense. Return on plan assets / amortization of prior service cost / amortization of gains or losses / interest cost / service costAustin Company has a net loss pension amortization amount of $500,000 in the current year. This amount will __________ pension expense. IncreaseService cost, interest cost, the return on plan assets, prior service cost amortization, and net gainor loss amortization make upPension expenseThe following information refers to Dora Company’s defined benefit pension plan for the current year. Service cost $3,000; interest cost: $2,000; amortization of prior service cost: $700; amortization of net loss: $300; expected return on plan assets: $3,000. Recognition of pension expense will includeDebit to plan assets for $3,000. / credit to PBO of $5,000.
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  • Fall '15
  • Accounting, Balance Sheet, benefit pension plan, pension plan, Intermediate Accounting III, ACC-309 INTERMEDIATE ACCOUNTING

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