Exam 17: Employee Compensation-Payroll, pensions, Other Compissues

On January 1,2014,Reason Co.estimated a projected benefit of $440,000 based on a settlement rate of 12 percent.Pension benefits paid to retirees totaled $60,000.Service costs for 2014 amounted to $148,000.The fair value of the plan assets were $350,000 and $400,000 on December 31,2013,and December 31,2014,respectively.The projected benefit obligation at December 31,2014,was

Costs related to a new pension plan that are necessary to "catch up" for services rendered prior to the inception of the pension plan are classified as

Winters,Inc. ,pays its managers a bonus consisting of 7% of net income (income after deduction of both bonus and income taxes).The company's income tax rate is 20%.Income for the current year is $600,000. How much bonus would be paid for the current year (rounded to whole dollars)?

Which of the following accounting principles best describes the rationale for reporting a liability for earned but unused compensated absences?

One component of net pension expense,unrecognized gains and losses,comes from the following sources:

Holster Western Wear,Inc.has a defined benefit pension plan covering its 120 employees.Information relating to the plan follows: Holster expects a 10 percent return on its pension fund assets.Compute the difference between the actual return and the expected return and explain how this amount affects net periodic pension cost for 2014.

One component of net pension expense,unrecognized gains and losses,comes from which of the following sources?

Blue Ice Inc.compensates its employees for certain absences.Employees can receive one day vacation plus one day sick leave for each month worked during the year.Unused vacation days may be carried forward,but unused sick leave expires within the year of employment.Employees are compensated according to their current pay rate.The following data were taken from the records for the year 2014. Compute the amount that should be reported as a liability for compensated absences on December 31,2014.

Based on the following data,determine the net periodic pension cost:

International accounting standards for pensions currently in effect

During the first week of February,Gabe Hopen earned $300.Assume that FICA taxes are 7.65 percent of wages up to $106,800,state unemployment tax is 5.0 percent of wages up to $13,000,and federal unemployment tax is 0.8 percent of wages up to $13,000.Assume that Gabe has voluntary withholdings of $10 (in addition to taxes)and that federal and state income tax withholdings are $18 and $6,respectively. -Using the information above,what is the employer's payroll tax expense for the week,assuming that Gabe Hopen is the only employee?

Jenine Company sponsors a noncontributory,defined benefit pension plan.On December 31,2014,the end of the company's accounting period,the company received the projected benefit obligation report from the independent actuary.The following data were included: Based on this information,the January 1,2014,balance for the PBO and the service cost for the year ended December 31,2014,were Beginning PBO 2014 Service Cost

Which of the following taxes must be paid by both the employee and the employer?

The following balances relate to the defined benefit pension plan of Rundgren Industries. No benefits were paid in either 2013 or 2014. Compute pension expense for 2013 and 2014,assuming minimum amortization is taken.

Which of the following payroll taxes are paid by the employer?

Paltry Corporation has a pension plan that has a provision that employees will receive benefits upon retirement even though the employees are not working for the company at the time of retirement.Such a plan is characterized as

The following information relates to the defined benefit pension plan for the Moldor Company for the year ending December 31,2014. -Using the information above,the actual return on plan assets for the year is

What is measured by the accumulated benefit obligation?

Unrecognized prior service cost can be amortized based on which of the following methods?

Which of the following statements characterizes defined contribution plans?