Andrews Company has five employees participating in its defined benefit pension plan. Expected years of future service for these
employees at the beginning of 2014 are as follows. On January 1, 2014, the company amended its pension plan, increasing its projected benefit obligation by $72,000.
Compute the amount of prior service cost amortization for the years 2014 through 2019 using the years-of-service method, setting up appropriate schedules.
Compute the amount of prior service cost amortization for the years 2014 through 2019 using the years-of-service method, setting up appropriate schedules.
1 answer:
Answer and Explanation:
Computation of service years
Year Jim Paul Nancy Dave Kathy Total × Cost Amortization
2014 1 1 1 1 1 5 × 3,000 $15,000
2015 1 1 1 1 1 5 × 3,000 $15,000
2016 1 1 1 1 1 5 × 3,000 $15,000
2017 1 1 1 1 4 × 3,000 $12,000
2018 1 1 1 3 × 3,000 $9,000
2019 1 1 2 × 3,000 $6,000
Total $72,000
Future years of service
Jim 3
Paul 4
Nancy 5
Dave 6
Kathy 6
Total 24
Working note:-
Cost per service year = Benefit obligation ÷ Total
= $72,000 ÷ 24
= $3,000
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Answer: hello your question is incomplete attached below is the missing information
Answer :
$900
$600
<u>Given the new price of $4 by Government </u>
quantity demanded = 400 units
quantity supplied = 150 units
quantity bought and sold = 150 units
- $975
- $150
- $375
Explanation:
Consumer surplus ( area below demand curve and above $300
= Area of triangle = 0.5 * base * height
= 0.5 * 300 ( 12 - 6 ) = $900
producer surplus ( area above supply curve and below $300
= Area of the triangle = 0.5 * 300 ( 6-2 ) = $600
<u>Given the new price of $4 by Government </u>
quantity demanded = 400 units
quantity supplied = 150 units
quantity bought and sold = 150 units
Consumer surplus ( area of triangle + area of rectangle )
= 0.5 * 150 * ( 12-9 )+ L*B
= 0.5 * 150 * ( 3 ) + 150 * ( 9 - 4 ) = $975
producer surplus ( Area of triangle )
= 0.5 * 150 * (4-2) = $150
deadweight loss ( area of triangle )
= 0.5 * ( 300 - 150 ) ( 9-4 )
= $375
