Exercise 20-9 Taveras Enterprises provides the following information relative to
ID: 2515346 • Letter: E
Question
Exercise 20-9 Taveras Enterprises provides the following information relative to its defined benefit pension plan. Balances or Values at December 31, 2017 Projected benefit obligation Accumulated benefit obligation Fair value of plan assets Accumulated OCI (PSC) Accumulated OCI-Net loss (1/1/17 balance, 0) Pension liability Other pension plan data for 2017 $2,737,000 1,980,000 2,278,329 210,000 45,680 458,671 Service cost Prior service cost amortization Actual return on plan assets Expected return on plan assets Interest on January 1, 2017, projected benefit obligation Contributions to plan Benefits paid $94,000 42,000 130,000 175,680 253,000 93,329 140,000Explanation / Answer
Solution:
a.
A.Plan assets
1.Opening balance = 5-2-3+4 $ 2,195,000
2.+ return on Plan assets $ 130,000
3.+contribution to plan 2017 $ 93,329
4.- Pension paid out $ ( 140,000 )
5.Fair value of Plan Assets on 31.12 $ 2,278,329
B.Plan Obligations
1.Opening balance =5-2-3-4 $ 1174329
2.Interest Cost year 2017 $ 253,000
3.Service Cost year 2017 $ 94,000
4.Pension liability $ 458,671
5.Accumulated Benefit obligation $ 1980000
C. Net deficit /surplus of obligations net of Assets
Difference in obligations opening –Assets opening =$ 1,174,329- 2,195,000
=$ (1,020,671)surplus
Difference in Obligations closing-Assets Closing = 1,980,000-2,278,329
= $ ( 298,329) surplus
Decrease in surplus at year end 2017 = $ 722342
b. Accumulated net loss on 1/1/17 $ (45680)
Accumulated Other Comprehensive income (PSC) + $ 210,000
Other comprehensive Income year 2017 + $ 634,320
So Closing Other Comprehensive Income year 2012 = $ 798,640
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.