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
Eddi Din [679]
4 years ago
11

On January 1, 2018, Gillock Climbing Academy instituted a defined benefit pension plan for its employees. The annual service cos

t for each year of 2018 and 2019 was $600,000. The interest rate used to determine the projected benefit obligation is 10%. Both the actual and the expected return on plan assets are 8% for both years. Gillock funded the plan in the amount of $400,000 each January 1, beginning on January 1, 2018. What amount of pension expense should Gillock report in its income statement for the year ended December 31, 2019?
Business
2 answers:
Licemer1 [7]4 years ago
5 0

Answer:

Pension Expense = EBE = $593440 for income statement

Explanation:

The opening balance of the Plan asset is made by the 40000 from 2018 plus interest of 32000 and the new 400000 made this year. Why include it? Because an opening balance are the funds in an account at the beginning of the year either from last year or are from current year but should be the first entry in the books of the current year.

                                                                 DBO                plan asset       EBE

opening balance                                   (600000)            832000             -

interest                                                   ( 60000)              66560            6560

current year's service cost                    (600000)                               (600000)

                                                            (  1260000 )            898560      <u> 593440</u>

 balance sheet liability = 361440

SCORPION-xisa [38]4 years ago
5 0

Answer:

The pension expense to be reported in the income statement of Gillock for the year ended 31st December,2019 is $593,440.00  

Explanation:

Find attached spreadsheet for detailed computation.

Download xlsx
You might be interested in
A real estate investor researches 4-plex apartment complexes in a city and finds that from 2000 to 2012, the average price of th
Dahasolnce [82]

Answer:

221,672

Explanation:

To find the rate of increase, find differential of p(t)

p(t)= 0.15e^(0.2t)

dp/dt= 0.03e^(0.2t)

at t=10

dp/dt= 0.03e^(0.2×10)

dp/dt= 0.03e^2

dp/dt= 0.221672 million dollars

dp/dt= 221,672

4 0
4 years ago
Read 2 more answers
What is the goal of swot?
Radda [10]
Strengths
Weaknesses
Opportunities
Threats

SWOT's goal is to assist you in strategic planning.
5 0
3 years ago
Lower interest rates cause a(n) ____________in capital utilization, which shifts the production function __________and thereby s
Anna71 [15]

Answer:

The correct answer here to the first fill in the blank is Increase and for the second one it is Upward and for the third one it is Rightwards.

Explanation:

If there is any change in the interest rate or tax treatment , there will be an impact on the capital utilization , which will then help in determining the positions of the LRAS (long run aggregate supply curve ) curve. So if there is an decrease in the interest rate , then it will cause increase in the capital utilization, which will then shift the production to upwards and there by shift the LRAS curve rightwards. LRAS curve shifts to rightwards when in the long run , increase in investment ( which is due to lower interest rate ) causes the economy's capacity to produce, as the production cost is reduced.

5 0
3 years ago
You are thinking of building a new machine that will save you $ 1 comma 000 in the first year. The machine will then begin to we
Lorico [155]

Answer:

Present Value= $14,285.71

Explanation:

Giving the following information:

You are thinking of building a new machine that will save you $1,000 in the first year.

The machine will then begin to wear out so that the savings decline at a rate of 2 % per year forever.

Interest rate= 5%

We need to use the formula of a perpetual annuity. Because of the wear out, we need to sum it to the interest rate the 2%

PV= Cf/(i-wear put)

PV= 1,000 / (0.05 + 0.02)= $14,285.71

6 0
3 years ago
50 PTS IF CORRECT
jeka57 [31]

Answer:

He believed in a laissez-faire policy in which the government does not interfere in commerce

Explanation:

In his book " The wealth of nations", he states that the key of social well being  is economic growth, which can be reflected in the division of work and in the free competition. He beleived in an "invisible hand" that would naturally regulate the behaviour of markets, without government implication in it.

3 0
3 years ago
Other questions:
  • The World Bank is an example of a(n) ____, supported by industrialized nations, including the United States.
    7·2 answers
  • Approximately how much of the initial investment's value would be lost after 15 years at 3% inflation?
    6·2 answers
  • You're having trouble coping with stressful life events, so you begin seeing a therapist. The therapist does not focus on your c
    14·1 answer
  • A detailed plan for the future that is usually expressed in formal quantitative terms is known as a:
    15·1 answer
  • XYZ Insurance Company uses class rating to determine the rate to charge for insurance. For one type of insurance, the pure premi
    8·1 answer
  • _____ are the taken-for-granted beliefs and philosophies that are so ingrained that employees simply act on them rather than que
    8·1 answer
  • The Math department also purchased a printer. After 4 years, it will have a salvage value of $200. A new printer is expected to
    10·1 answer
  • Use for business communications only and the disallowing of the transmission of confidential business information are recommende
    10·1 answer
  • Factors of production are the parts of the economy that:
    7·1 answer
  • ______ allows employees to move from one job to another in an effort to relieve the boredom that is often associated with job sp
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!