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    BE20-1, BE20-2, E20-1 (A), E20-2

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    poiriejs
    This document contains information about pension expense calculations for two different companies. The first section shows the line items used to calculate a pension expense of $677 million, including service cost, interest on the projected benefit obligation, return on plan assets, and amortization amounts. The second section provides details of a plan's assets and benefits paid to calculate an actual return on plan assets of $300,000. The remaining sections show example calculations of pension expense for two companies, including service cost, interest cost, expected return on assets, and amortization amounts.

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    BE20-1, BE20-2, E20-1 (A), E20-2

    Uploaded by

    poiriejs
    49 views1 page
    This document contains information about pension expense calculations for two different companies. The first section shows the line items used to calculate a pension expense of $677 million, including service cost, interest on the projected benefit obligation, return on plan assets, and amortization amounts. The second section provides details of a plan's assets and benefits paid to calculate an actual return on plan assets of $300,000. The remaining sections show example calculations of pension expense for two companies, including service cost, interest cost, expected return on assets, and amortization amounts.

    Original Description:

    INtermediate Accounting Chap 20

    Original Title

    BE20-1, BE20-2, E20-1(a), E20-2

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    This document contains information about pension expense calculations for two different companies. The first section shows the line items used to calculate a pension expense of $677 million, including service cost, interest on the projected benefit obligation, return on plan assets, and amortization amounts. The second section provides details of a plan's assets and benefits paid to calculate an actual return on plan assets of $300,000. The remaining sections show example calculations of pension expense for two companies, including service cost, interest cost, expected return on assets, and amortization amounts.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    49 views1 page

    BE20-1, BE20-2, E20-1 (A), E20-2

    Uploaded by

    poiriejs
    This document contains information about pension expense calculations for two different companies. The first section shows the line items used to calculate a pension expense of $677 million, including service cost, interest on the projected benefit obligation, return on plan assets, and amortization amounts. The second section provides details of a plan's assets and benefits paid to calculate an actual return on plan assets of $300,000. The remaining sections show example calculations of pension expense for two companies, including service cost, interest cost, expected return on assets, and amortization amounts.

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    © All Rights Reserved
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    of 1

    BRIEF EXERCISE 20-1

    Service cost ...........................................................


    Interest on PBO......................................................
    Return on plan assets ...........................................
    Amortization of prior service cost ........................
    Amortization of net loss ........................................
    Pension expense ...................................................

    $ 366,000,000
    737,000,000
    (593,000,000)
    13,000,000
    154,000,000
    $ 677,000,000

    BRIEF EXERCISE 20-2


    Ending plan assets ................................................
    Beginning plan assets ...........................................
    Increase in plan assets ..........................................
    Deduct: Contributions ..........................................
    Less: Benefits paid ................................
    Actual return on plan assets .................................

    $
    $120,000
    200,000
    $

    2,000,000
    (1,780,000)
    220,000
    (80,000)
    300,000

    EXERCISE 20-1 (1520 minutes)


    (a) Computation of pension expense:
    Service cost ....................................................
    Interest cost ($500,000 X .10) .........................
    Expected return on plan assets .....................
    Prior service cost amortization .....................
    Pension expense for 2014 ..............................

    $ 60,000
    50,000
    (15,000)
    8,000
    $103,000

    EXERCISE 20-2 (1015 minutes)


    Computation of pension expense:
    Service cost ............................................................
    Interest cost ($700,000 X 10%) ..............................
    Expected return on plan assets ............................
    Prior service cost amortization .............................
    Pension expense for 2014 .....................................

    $ 90,000
    70,000
    (64,000)
    10,000
    $106,000

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