ACC 302 ACC302 Unit 5 Seminar with Answers (Kaplan University)

ACC 302 ACC302 Unit 5 Seminar with Answers (Kaplan University)

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ACC 302 Unit 5 Seminar (Kaplan)

  1. 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
  2.  
    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
  3.  
    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
  4.  
    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
  5.  
    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:

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