ACC 302 ACC302 Unit 5 Seminar with Answers (Kaplan University)
ACC 302 Unit 5 Seminar (Kaplan)
- The following pension plan information is for Farr Company at December 31, 2015. Projected benefit obligation $8,500,000
Accumulated benefit obligation 7,500,000
Plan assets (at fair value) 6,150,000
Accumulated OCI (PSC) 540,000
Pension expense for 2015 3,000,000
Contribution for 2015 2,400,000
The amount to be reported as the liability for pensions on the December 31, 2015 balance sheet is -
The following data are for the pension plan for the employees of Lockett Company.
1/1/14 12/31/14 12/31/15
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%
Lockett’s contribution was $420,000 in 2015 and benefits paid were $375,000. Lockett
estimates that the average remaining service life is 15 years.
Assume that the actual return on plan assets in 2015 was $265,000. The unexpected gain on plan assets in 2015 was -
The following data are for the pension plan for the employees of Lockett Company.
1/1/14 12/31/14 12/31/15
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%
Lockett’s contribution was $420,000 in 2015 and benefits paid were $375,000. Lockett
estimates that the average remaining service life is 15 years.
The corridor for 2015 was $300,000. The amount of AOCI-net loss amortized in 2015 was -
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 interest cost for 2015 is -
The following information for Cooper Enterprises is given below:
December 31, 2015
Assets and obligations
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.
The amortization of Other Comprehensive Loss for 2016 is:
