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

The following data relate to the defined benefit pension plan of the Brotherhood Corp.for the years 2013-2015: At December 31,2012,the books of Youngblood Corp.reflected a pension liability of $30,000.The fair value of pension fund assets at that date was $1,300,000.The pension fund is administered by an independent trustee.

Which of the following criteria is not required for the recognition of a liability for compensated absences under FASB ASC Topic 710?

The projected benefit obligation is the measure of pension obligation that

Each full-time employee of Hydroponics Greenhouse is entitled to ten paid sick days each year.The sick pay is not vested,but any unused sick days can be carried over to subsequent years.Under FASB ASC Topic 710,Hydroponics Greenhouse should

Employees of Mayhem Fabricators,Inc.earned gross wages of $140,000 during a recent two-week period.Employee withholdings and payroll tax percentages are presented below: Only $78,000 of wages are subject to FICA,and $36,000 are subject to unemployment taxes.

The amount of the expected return on plan assets is computed by multiplying the

An enterprise provides for paid vacation periods for many of its employees.It is probable that these vacations will be taken,and there is a definite amount that accrues each year for each employee.Vacation benefits accrue in the amount of one paid vacation day per complete month of service,that is,an employee must work a complete month before receiving the benefits of another paid vacation day. Given the above information,which of the following statements is correct?

The vested benefits of an employee in a pension plan represent benefits

Shutters Company adopted a defined benefit pension plan on January 1,2014.Shutters amortizes the prior service cost over 16 years and funds prior service cost by making equal payments to the fund trustee at the end of each of the first ten years.The service cost is fully funded at the end of each year.The following data are available for 2014: If interest cost for 2014 is equal to the return on plan assets,then Shutters's prepaid pension cost at December 31,2014,is

Mint Company sponsors a noncontributory,defined-benefit pension plan.At December 31,2014,the end of the company's fiscal year,the actuary's report showed pension benefits paid of $15,000,and PBO balance of $300,000.The trustee's report showed a beginning plan assets balance (at fair value)of $240,000,contributions for the year of $36,000,and an actual return on plan assets of 10 percent (the expected return was 9 percent). The underfunded PBO at the end of 2014 was

Valve Corporation has the following pension information for the year ended December 31,2014: Assuming the expected return on plan assets and the settlement rate are both 10 percent,what amount should Valve report for pension expense for 2014?

Lincoln Corporation provides an incentive compensation plan under which its president is to receive a bonus equal to 15 percent of Lincoln's income in excess of $150,000 before deducting income tax but after deducting bonus.If income before income tax and bonus is $320,000 and the effective tax rate is 40 percent,the amount of the bonus should be

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,service cost for the year would be

The following information relates to the defined benefit pension plan of the Summersville Company for the year ending December 31,2014: The net amount of the gain or loss component to be included in pension cost for 2014 would be