Exam 17: Pensions and Other Postretirement Benefits

Data for 2016 were as follows: PBO,January 1,$240,000 and December 31,$270,000;pension plan assets (fair value)January 1,$180,000,and December 31,$230,000.The projected benefit obligation was underfunded at the end of 2016 by:

Use the following to answer questions The following data are for Guava Company's retiree health care plan for the current calendar year. -What is the interest cost to be included in the current year's postretirement benefit expense?

Carpenter Gems began the year with a net pension liability of $84 million (underfunded pension plan).Pension expense for the year included the following ($ in millions): service cost,$30;interest cost,$18;expected return on assets,$12;amortization of net loss,$6. Required: Prepare the appropriate general journal entry to record Carpenter's pension expense.

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the most correct term by placing the number designating that term in the space provided.

On December 31,2016,the following pension-related data were available for CPS Industries' noncontributory,defined benefit pension plan: Required: 1)Prepare the 2016 journal entry to record pension expense. 2)How will the statement of comprehensive income be affected by any 2016 gains and losses?

Defined contribution pension plans that link the amount of contributions to company performance are often called:

The pension expense includes periodic changes that occur:

Consider the following: I.Present value of vested benefits at present pay levels. II.Present value of nonvested benefits at present pay levels. III.Present value of additional benefits related to projected pay increases. Which of the above constitutes the vested benefit obligation?

Hall of Fame Co.has a defined benefit pension plan.Two alternative possibilities for pension-related data for the current calendar year are shown below: Required: 1)For each independent case,calculate amortization of the net loss or gain that should be included as a component of pension expense for the current year. 2)Determine the net loss or gain as of December 31 of the current year.

The income statement of Starboard Industries includes $12 million for the amortization of a loss resulting from the company's actuary changing an estimate used in calculating the obligation for the pension plan.Does Starboard Industries prepare its financial statements according to U.S.GAAP or IFRS?

The attribution period for postretirement benefits spans each year of service from the employee's date of hire to the employee's date of:

Which of the following describes defined benefit pension plans?

The portion of the obligation that plan participants are entitled to receive regardless of their continued employment is called the:

There almost always is a balance sheet liability for plans of postretirement benefits other than pensions since very few of these plans are funded.

Pension data for Sewell Corporation include the following for the current calendar year: Required: Assuming cash contributions were made at the end of the year,what was the amount of those contributions?

The following is an incomplete pension spreadsheet for the current year for Desperado Corporation. Required: 1)Complete the pension spreadsheet. 2)Prepare the journal entry to record pension expense for the year.

What was PVE's pension expense for the year?

The amount of cash paid annually for unfunded postretirement health benefit plans,assuming they are not independently insured,usually is equal to:

What are the possible components of pension expense? Which of these elements would exist in every defined benefit plan?

Prior service cost is included among OCI items in the statement of comprehensive income and thus subsequently becomes part of AOCI where it is amortized over the average remaining service period using