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Arte-miy333 [17]
3 years ago
8

Jasper Company has a defined benefit pension plan. Effective at the beginning of the current year, the company retroactively ame

nded its pension plan to increase the pension formula's salary percentage. Which of the following statements are correct? (Select all that apply.)
A. The increase in the PBO attributable to applying the more generous terms of the amendment to prior service years is the prior service cost
B. The prior service cost is the difference between the PBO at the end of the previous year that was calculated without regard to the amendment and the recalculated PBO based on the plan amendment
C. Prior service cost includes the increase in the PBO attributable to employee service performed during the current year
D. Since it was effective at the beginning of the year, the change in the pension formula's salary percentage will not impact the current year interest cost

Required Information
The PBO can change due to the accumulation of service cost from year to year, the accrual of interest as time passes, making plan amendments retroactive to prior years (prior service cost), and periodic adjustments when estimates change (gains and losses). The obligation is reduced as benefits actually are paid to retired employees.
Business
1 answer:
dedylja [7]3 years ago
6 0

Answer: A. The increase in the PBO attributable to applying the more generous terms of the amendment to prior service years is the prior service cost

B. The prior service cost is the difference between the PBO at the end of the previous year that was calculated without regard to the amendment and the recalculated PBO based on the plan amendment

Explanation:

Both options A and Be are correct because as the question says, the PBO can change due to the accumulation of service cost from year to year. This means that the increase in the PBO attributable to applying the more generous terms of the amendment to prior service years is the prior service cost.

This is also the reason why we can calculate the prior service cost by subtracting from the previous PBO that was not yet amended, the new PBO that is amended because the service cost is what the PBO increased by.

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CompuTronics, a manufacturer of computer peripherals, has excess capacity. The company's Utah plant has the following per-unit c
zavuch27 [327]

Answer:

a. $60.

Explanation:

While computing the relevant cost in case of special order only the variable manufacturing cost is to be considered as it will be changed in special order case.

And the other cot like - fixed manufacturing, variable & fixed selling, traceable fixed administrative cost, etc are not relevant as it remains constant

These costs are not useful for decision making. Hence, it is to be ignored

3 0
3 years ago
International Imports (I2) pays an annual dividend rate of 10.40% on its preferred stock that currently returns 13.94% and has a
dangina [55]

Answer:

$74.61

Explanation:

The computation of the value of preferred stock is shown below:

Value of preferred stock = Annual dividend ÷ return of preferred stock per share

= 10.40% × 100  ÷ 13.94%

= $74.61

Simply we divide the annual dividend by the value of preferred stock per share so that the correct value of preferred stock can be computed

7 0
3 years ago
What happens at oceanic-continental convergent boundaries
anzhelika [568]

Answer:

The first type of convergent boundary is Oceanic-Continetal Convergence. This type of convergent boundary happens where an oceanic plate and a continental plate push together causing the oceanic plate to be forced under the continental plate into the mantle because the oceanic plate is thinner. This is called a subduction.

Explanation:

4 0
3 years ago
Grandfather clocks have a particular market in auctions. One theory about the price at an auction is that it is higher when ther
anastassius [24]

Answer:

t value is 1.495

Explanation:

The null and alternative hypothesis are :

H0 : mu = 1327

ha: mu > 1327

This is a one tailed test

Critical value = 1.771

at 0.05 significance level with df = 14-1 = 13

test statistics:

s = 411.53, n = 14

t = (xbar -mu)/(s/sqrt9n))

= ( 1491.43 - 1327)/(411.53/sqrt(14))

= 1.495

Decision:

Reject H0 if tstat > 1.771

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Anestetic [448]

Answer:

Dr D. Hopkins, Capital 210,000

Cr P. Houghton, Capital 10,000

Cr M. Hammel, Capital 10,000

Cr Cash 230,000

Explanation:

Preparation of the December 31 journal entry for the partnership.

Based on the information given the December 31 journal entry for the partnership will be :

Dr D. Hopkins, Capital 210,000

Cr P. Houghton, Capital 10,000

(100,000-80,000/2)

Cr M. Hammel, Capital 10,000

(100,000-80,000/2)

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3 years ago
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