ACC 302 ACC302 Unit 5 Exam with Answers (Kaplan University)
ACC 302 Unit 5 Exam (Kaplan)
- Presented below is pension information for Green Company for the year 2015: Expected return on plan assets $24,000
Interest on vested benefits 15,000
Service cost 50,000
Interest on projected benefit obligation 21,000
Amortization of prior service cost due to increase in benefits 18,000
The amount of pension expense to be reported for 2015 is -
The interest on the projected benefit obligation component of pension expense -
Ohlman, Inc. maintains a defined-benefit pension plan for its employees. As of December 31, 2015, the market value of the plan assets is less than the accumulated benefit obligation. The projected benefit obligation exceeds the accumulated benefit obligation. In its balance sheet as of December 31, 2015, Ohlman should report a liability in the amount of the -
Presented below is pension information related to Woods, Inc. for the year 2015:
Service cost $82,000
Interest on projected benefit obligation 54,000
Interest on vested benefits 24,000
Amortization of prior service cost due to increase in benefits 12,000
Expected return on plan assets 18,000
The amount of pension expense to be reported for 2015 is -
Which of the following statements is true about postretirement health care benefits? -
When a company adopts a pension plan, prior service costs should be charged to -
The computation of pension expense includes all the following except -
A corporation has a defined-benefit plan. A pension liability will result at the end of the year if the -
The following information relates to Jackson, Inc.:
For the Year Ended December 31,
2014 2015
Plan assets (at fair value) $1,360,000 $1,824,000
Pension expense 570,000 450,000
Projected benefit obligation 1,620,000 1,934,000
Annual contribution to plan 600,000 450,000
Accumulated OCI (PSC) 480,000 420,000
The amount reported as the liability for pensions on the December 31, 2015 balance sheet is -
Presented below is information related to Noble Inc. as of December 31, 2015.
Accumulated OCI (G/L) $ 90,000
Projected benefit obligation 3,650,000
Accumulated benefit obligation 3,420,000
Vested benefits 1,620,000
Plan assets (at fair value) 3,354,000
Accumulated OCI (PSC) -0-
The amount reported as the pension liability on Noble's balance sheet at December 31, 2015 is as follows: -
Foster Corporation received the following report from its actuary at the end of the year:
December 31, 2014 December 31, 2015
Projected benefit obligation $2,000,000 $2,200,000
Accumulated benefit obligation 1,300,000 1,480,000
Fair value of pension plan assets 1,380,000 1,440,000
The amount reported as the pension liability at December 31, 2014 is -
In a defined-contribution plan, a formula is used that -
The following data are for the pension plan for the employees of Leonard Company.
1/1/13 12/31/13 12/31/14
Accumulated benefit obligation $2,500,000 $2,600,000 $3,400,000
Projected benefit obligation 2,700,000 2,800,000 3,700,000
Plan assets (at fair value) 2,300,000 3,000,000 3,300,000
AOCL – net loss -0- 480,000 500,000
Settlement rate (for year) 10% 9%
Expected rate of return (for year) 8% 7%
Leonard’s contribution was $420,000 in 2014 and benefits paid were $375,000. Leonard
estimates that the average remaining service life is 15 years.
Assume that the actual return on plan assets in 2014 was $265,000. The unexpected gain on plan assets in 2014 was -
Prior service cost is amortized on a -
The following information is related to the pension plan of Long, Inc. for 2015.
Actual return on plan assets $200,000
Amortization of net gain 82,500
Amortization of prior service cost due to increase in benefits 150,000
Expected return on plan assets 230,000
Interest on projected benefit obligation 362,500
Service cost 850,000
Pension expense for 2015 is -
The following information for Cooper Enterprises is given below:
Assets and obligations December 31, 2015
Plan assets (at fair value) $400,000
Accumulated benefit obligation 740,000
Projected benefit obligation 800,000
Other Items
Pension asset / liability, January 1, 2015 20,000
Contributions 240,000
Accumulated other comprehensive loss 335,800
There were no actuarial gains or losses at January 1, 2015. The average remaining service life of employees is 10 years.
What is the pension expense that Cooper Enterprises should report for 2015? -
In a defined-benefit plan, a formula is used that -
When a company amends a pension plan, for accounting purposes, prior service costs should be -
The following information relates to the pension plan for the employees of Turner Co.:
1/1/14 12/31/14 12/31/15
Accum. benefit obligation $6,160,000 $6,440,000 $8,400,000
Projected benefit obligation 6,510,000 6,972,000 9,338,000
Fair value of plan assets 5,950,000 7,280,000 8,036,000
AOCI – net (gain) or loss -0- (1,008,000) (1,120,000)
Settlement rate (for year) 11% 11%
Expected rate of return (for year) 8% 7%
Turner estimates that the average remaining service life is 16 years. Turner's contribution was $882,000 in 2015 and benefits paid were $658,000.
The amount of AOCI (net gain) amortized in 2015 is -
Rossi Company has a defined-benefit plan. At the end of 2015, it has determined the following information related to its pension plan:
Projected benefit obligation $730,000
Accumulated benefit obligation 660,000
Fair value of pension plan assets 610,000
The amount of pension liability that is reported in Rossi's balance sheet at the end of 2015 is -
Which of the following disclosures of pension plan information wouldnot normally be required? -
The actual return on plan assets -
The following data are for the pension plan for the employees of Leonard Company.
1/1/13 12/31/13 12/31/14
Accumulated benefit obligation $2,500,000 $2,600,000 $3,400,000
Projected benefit obligation 2,700,000 2,800,000 3,700,000
Plan assets (at fair value) 2,300,000 3,000,000 3,300,000
AOCL – net loss -0- 480,000 500,000
Settlement rate (for year) 10% 9%
Expected rate of return (for year) 8% 7%
Leonard’s contribution was $420,000 in 2014 and benefits paid were $375,000. Leonard
estimates that the average remaining service life is 15 years.
The corridor for 2014 was $300,000. The amount of AOCI-net loss amortized in 2014 was -
A pension fund gain or loss that is caused by a plant closing should be -
Alternative methods exist for the measurement of the pension obligation (liability). Which measure requires the use of future salaries in its computation?
