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zzz [600]
3 years ago
14

Pension data for David Emerson Enterprises include the following: ($ in millions) Discount rate, 10% Projected benefit obligatio

n, January 1 $ 360 Projected benefit obligation, December 31 465 Accumulated benefit obligation, January 1 300 Accumulated benefit obligation, December 31 415 Cash contributions to pension fund, December 31 150 Benefit payments to retirees, December 31 54 Required: Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the year ended December 31.
Business
1 answer:
Gelneren [198K]3 years ago
5 0

Answer:

$123

Explanation:

Calculation to determine the service cost component of pension expense for the year ended December 31.

PENSION BENEFIT OBLIGATION

Beginning of the year Projected benefit obligation $360

Service cost ?

Interest cost $36

(10%*360)

Loss (gain) on PBO $0

Less: Retiree Benefits ($54)

End of the year Projected benefit obligation $465

Hence,

SERVICE COST= ($465-$360-$36+$54)

SERVICE COST= $123

Therefore the service cost component of pension expense for the year ended December 31 will be $123

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egas Company has the following unit costs: Variable manufacturing overhead $25 Direct materials 20 Direct labor 19 Fixed manufac
matrenka [14]

Answer:

$290,000

Explanation:

Calculation for what is the net income using a contribution margin income statement

Using this formula

Net income=(Product sells-Variable manufacturing overhead --Direct materials -Direct labor -Variable marketing and administrative)*Units sold

Let plug in the formula

Net income=($100 – $25 – $20 – $19 – $7) ×$10,000

Net income=$29×$10,000

Net income= $290,000

Therefore the net income using a contribution margin income statement will be $290,000

6 0
3 years ago
The following materials standards have been established for a particular product: Standard quantity per unit of output 4.5 meter
sweet-ann [11.9K]

Answer:

$2,450 Unfavorable

Explanation:

The computation of material price variance is shown below:-

Material price variance = ( Standard Price - Actual Price ) × Actual Quantity of materials purchased

= $17.40 - ($124,250 ÷ 7000) × 7,000

= ($17.40 - $17.75) × 7000

= $2,450 Unfavorable

Therefore for computing the material price variance we simply applied the above formula.

3 0
4 years ago
Potter Industries has a bond issue outstanding with an annual coupon of 6% and a 10-year maturity. The par value of the bond is
kirill115 [55]

The value of the bond is $865.80.

<h3>What is a bond?</h3>

A bond is a debt instrument used to raise capital. Bondholders receive periodic interest payment. At the maturity of the bond, the bondholders receive the amount invested.

<h3>What is the value of the bond?</h3>

The value of the bond can be determined by calculating the present value of the bond. The present value is the sum of the discounted cash flows.

Present value = (60 / 1.08) +  (60 / 1.08^2) +  (60 / 1.08^3) +  (60 / 1.08^4) +  (60 / 1.08^5) +  (60 / 1.08^6) +  (60 / 1.08^7) +  (60 / 1.08^8) +  (60 / 1.08^9) +  (60 / 1.08^10) +  (1000 / 1.08^10) = $865.80

To learn more about present value, please check: brainly.com/question/25748668

5 0
3 years ago
. AEC Company issues common stock that is expected to pay a dividend over the next year of $2 at a stock price of $20 per share
8090 [49]

Answer:

A) 5.0%

Explanation:

AEC Company expects to pay a dividend over the next year of $2 at a stock price of $20 per share, thus the dividend rate over next year = $2/ $20 = 10%

The WACC is 12%, the company is financed by 30% debt and 70% equity, and the cost of debt is 5%;

WACC 12%= 30% x cost of debt 5% + 70% x cost of equity  

->Cost of equity = (12% -30%*5%)/70% = 15%

Thus expected growth rate of dividend = Cost of equity 15% - dividend rate over next year 10% = 5%

4 0
3 years ago
The government’s authority at all levels to ensure the health, safety and welfare of its citizens, which includes the control of
maxonik [38]

Answer:

Police Power

Explanation:

According to my research on different government powers, I can say that based on the information provided within the question this is the definition of Police Power. Like mentioned in the question this is the ability that states have to regulate it's citizens behaviors and maintain order, for the health, safety, and general welfare of those citizens.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

5 0
3 years ago
Read 2 more answers
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