1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Hitman42 [59]
3 years ago
14

Babcock Company received the following reports of its defined benefit pension plan for the current calendar year: PBO Plan asset

s Balance, January 1 $ 650,000 Balance, January 1 $ 530,000 Service cost 369,000 Actual return 51,000 Interest cost 74,000 Annual contribution 226,000 Benefits paid (97,000 ) Benefits paid (97,000 ) Balance, December 31 $ 996,000 Balance, December 31 $ 710,000 The long-term expected rate of return on plan assets is 8%. Assuming no other data are relevant, what is the pension expense for the year
Business
1 answer:
labwork [276]3 years ago
6 0

Answer:

The pension expense for the year is $400600

Explanation:

From the question; we have:

Babcock Company received the following reports of its defined benefit pension plan for the current calendar year:

PBO                                                     Plan assets    

Balance, January 1         650,000      Balance, January 1    530,000

Service cost                      369,00      Actual return                 51,000

Interest cost                       74,000     Annual contribution   226,000

Benefits paid                   (97,000 )     Benefits paid              (97,000 )

Balance,December 31   $996,000   Balance, December 31  $710,000

The long-term expected rate of return on plan assets is 8%. Assuming no other data are relevant, what is the pension expense for the year

From the information given;we have the plan assets to be $530000

the expected rate of return on plan assets = 8%

therefore

expected return on the plan assets = 8%  × $530000

expected return on the plan assets = 0.08  × $530000

expected return on the plan assets = $42400

The pension expense for the year can be determined by the formula:

pension expense = service cost + interest cost - expected return on plan

                                assets.

pension expense = $(369000 + 74000 -42400)

pension expense =  $(443000 - 42400)

pension expense =  $400600

You might be interested in
How does purchase a car affect the economy?
IRISSAK [1]
It effects the economy because that's another car that is having to take up oil and is another step to wasting natural resoources. Also the cars fumes pollute the air and everywhere around us.
6 0
3 years ago
Orlando, the manager of a camera store, believes that his store may be closed by corporate in the near future, so he cannot slee
olya-2409 [2.1K]

Orlando is experiencing panic.

He is panicking because of his anxiety that is caused by his beliefs that the place that he works might be closed soon. When an individual is experiencing chronic anxiety it can manifests in irrational behaviors or affecting the mind in a way that made it difficult for the individual to function effectively in his or her daily life, which we can see is happening with Orlando as described in the question.

3 0
3 years ago
abares Corporation had these transactions during 2020. Indicate whether each transaction is an operating activity, investing act
scZoUnD [109]

Answer:

(a) Issued $50,000 par value common stock for cash = Financing Activities

b) Purchased a machine for $30,000, giving a long-term note in exchange. Financing Activities = Non-cash Investing and Financing Activity

(c) Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000 =  Non-cash Investing and Financing Activities

(d) Declared and paid a cash dividend of $18,000 = Financing Activities

(e) Sold a long-term investment with a cost of $15,000 for $15,000 cash = Investing Activities

(f) Collected $16,000 from sale of goods = Operating Activities

Explanation:

The Cash flows related to raising of capital is known as Cash flow from Financing Activities.

The Cash flows related to growing and selling of Assets of the business is known as Cash flow from Investing Activities.

The Cash flow related to trade in Ordinary course business of the Company is known as Cash flow from Operating Activities.

7 0
3 years ago
What does​ "2/10" mean, with respect to​ "credit terms of​ 2/10, n/30"?
ANEK [815]

a.  a discount of 2 percent will be allowed if the invoice is paid within 10 days of the invoice date.

So for example if the bill is $100 "2/10 net 30" and you pay within 10 days, you get a 20 cent discount and the balance is $9.80. If you pay in 30 days, the full 10 dollars is due.

3 0
3 years ago
Mike has a car accident and Maria saves his life. To show his appreciation, Mike gives Maria a life estate in one of the homes h
jok3333 [9.3K]

Answer:

Jackie owns the property until Maria dies

Explanation:

In this specific scenario, Jackie owns the property until Maria dies. That is because, in common law and statutory law, a life estate also known as life tenancy is defined as the ownership of land for the duration of a person's life. Therefore since Mike granted life estate to Maria and not Jackie, the land is legally Maria's to do as she wishes up until the moment of her death. Once this comes to pass the land ownership is returned to Mike.

8 0
3 years ago
Other questions:
  • Is universal credit the same as universal basic income
    11·1 answer
  • The balance sheet of FIFA Cup Company included the following shareholders' equity section at December 31, 2021: ($ in millions)
    7·1 answer
  • In a contract what is a consideration?
    10·2 answers
  • What is the formula for measuring the price elasticity of supply? Percentage change in quantity demanded/percentage change in in
    13·1 answer
  • Freemore Corp. projected sales for the last 6 months of next year: July $206,000 October $181,000 August 168,000 November 203,00
    6·1 answer
  • Which item would not appear on a credit report?
    11·1 answer
  • John has a gross income of $60,000. He is single and is choosing to take a deduction for all single people amounting to $6,300.
    14·1 answer
  • What is the definition of the literary term “anthropomorphic”?
    9·2 answers
  • Novak Corporation purchased 380 shares of Sherman Inc. common stock for $12,900 (Novak does not have significant influence). Dur
    14·1 answer
  • 4. _______ are the fastest growing segment of today's workforce. They are optimistic, inventive and individualistic; they seek a
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!