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Helga [31]
3 years ago
14

Zink Co.’s defined benefit pension plan had plan assets with a fair value of $325,000 at December 31, year 8, and of $375,000 at

December 31, year 9. During year 9, Zink Co. recognized pension expense of $120,000 and contributed a total of $130,000 to the plan. Certain plan investments, which had a cost and carrying value of $125,000, were sold for $70,000 and payments to retirees for pension benefits amounted to $150,000. What was the actual return on plan assets?
Business
1 answer:
Lady_Fox [76]3 years ago
8 0

Answer:

C. A return of $70000

Explanation:

Given that

Beginning plan asset = 325000

End plan asset = 375000

Contributions = 130000

Total avalable assets initially = beginning plan asset + contributions

= 325000 + 130000

= 455,000.

Distributions of pension resulted in less 150000

Thus,

Balance = 455000 - 150000

= 305000.

But recall that the ending balance was

375000

Thus,

The difference between 375000 and 305000 = $70000, represents the return on plan assets.

Hence return on plan assets

= $70,000

NOTE that, the loss of $55,000 from sale of specific investments is included in the net gain of $70,000

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Game Play sells gaming systems and allows customers to mix-and-match individual components when placing a system order. Which ty
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Process.

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Generally, in a process facility layout, employees who are having similar job functions or roles are usually grouped together and as such productions are done in phases.

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Corrine works in a doctor's office. Sometimes the office is slow with only a few clients. She always finds tasks to keep her bus
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This is an initiative working habit.
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3 years ago
Michael works as a sales representative for an oilfield supply business in West Texas. He sells highly technical safety equipmen
saw5 [17]

Answer:

This question is incomplete, the options are missing. The options are the following:

a) The value of the product

b) The role of social media

c) The complexity of the product

d) The number of potential customers

And the correct answer is the option C: The complexity of the product.

Explanation:

To begin with, in the area of marketing when it comes to designing and developing a strategy for the company's campaign the for "Ps" are the essentials matter to have in mind. One of them, the "P" for promotion focus on the "how" to sell the product to the target audience and that matter the expertise find varies ways to do it. The personal selling is one of them and in this case actually the most appropiate one due to the complexity of the product that is being sold. Michael is right because this strategy allows the representative, who is an expertise in the product itself, to explain every little detail of the good and how it will adjust to every situation and more. So in order to accomplish the comfort of the client, the presence of the sale's agent is necessary and helpful in this case.

4 0
3 years ago
orter Plumbing's stock had a required return of 11.00% last year, when the risk-free rate was 5.50% and the market risk premium
Natali5045456 [20]

Answer:

The new required rate of return is 13.32%

Explanation:

The required rate of return is the minimum return that investors require for investing in a stock based on its risk. The required rate of return can be calculated using the CAPM model.

The formula for required rate of return (r) is:

r = rRF +Beta * rpM

Where,

  • rRF is the risk free rate
  • Beta is the stock's beta or measure of risk
  • rpM is the market risk premium

The beta of the stock is:

11 = 5.5 + beta * 4.75

11 - 5.5 = beta * 4.75

5.5 / 4.75 = beta

beta = 1.15789

The new required rate of return will be:

r = 5.5 + 1.15789 * (4.75 + 2)

r = 13.315% rounded off to 13.32%

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