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xenn [34]
3 years ago
10

The following information pertains to Lee Corp.'s defined benefit pension plan for year 2:Service cost $160,000Actual and expect

ed gain on plan assets 35,000Unexpected loss on plan assets related to a year 1 disposal of a subsidiary 40,000Amortization of unrecognized prior service cost 5,000Annual interest on pension obligation 50,000What amount should Lee report as pension cost in its year 2 income statement?
Business
1 answer:
serious [3.7K]3 years ago
3 0

Answer:

$180,000

Explanation:

This can be calculated as follows:

Pension cost in year 2 = Service cost + Prior service cost amortization + Interest cost - Actual and expected return on plan assets

Therefore, we have:

Pension cost in year 2 = $160,000 + $5,000 + $50,000 - $35,000 = $180,000

Therefore, Lee report should $180,000 as pension cost in its year 2 income statement.

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The Massoud Consulting Group reported net income of $1,376,000 for its fiscal year ended December 31, 2021. In addition, during
White raven [17]

Answer:

Statement of Comprehensive Income for 2021;

Net Income = $1,376,000

Other Comprehensive income (loss):-

Foreign Currency Translation Gain (Net of Tax):

= $350,000 - 25% of $350,000

= $350,000 - $87,500

= $262,500

Unrealized losses on investment securities (Net of tax):

= $90,000 - 25% of $90,000

= $90,000 - $22,500

= ($67,500)

Total other Comprehensive income:

= Foreign Currency Translation Gain (Net of Tax) + Unrealized losses on investment securities (Net of tax)

= $262,500 + ($67,500)

= $262,500 - $67,500

= $195,000

Comprehensive Income = Net Income + Total other Comprehensive income

                                        =  $1,376,000 + $195,000

                                        = $1,571,000

8 0
3 years ago
Armstrong is a well-known producer and seller of rose bushes. The company's marketing manager is interested in knowing what gard
Ilya [14]

Answer:

An example of primary data that Armstrong could use in this research project is:

d. Discussions among focus groups made up of small number of gardeners led by an interviewer.

Explanation:

Primary data is directly collected by the researcher.  It is the opposite of secondary data, which is data collected from primary sources and made available for use in a research.  Primary data is first-hand information collected during a research project.  Focusing on the discussions by gardeners will enable Armstrong to assess their perceptions about rose as a high-maintenance plant.

7 0
2 years ago
Peter Lynchpin wants to sell you an investment contract that pays equal $22,500 amounts at the end of each of the next 20 years.
Effectus [21]

Answer:

The amount to be paid for the contract today = $220,908.32

Explanation:

<em>The amount to be paid for the contract today will be equal to the present value of the annuity of $22,500 payable for 20 years discounted at a rate of 8% per annum.</em>

Present Value = A ×( 1 - (1+r)^(-n))/r

A- 22,500, r- rate of return - 8%, n -no of years 20 years

PV = 22,500 ×( 1-(1.08)^(-20) )/ 0.08

PV = 22,500 ×9.8181

PV = $220,908.32

The amount to be paid for the contract today = $220,908.32

7 0
3 years ago
Which of the following is consistent with effective internal control over sales transactions?A. The accounting department prepar
JulijaS [17]

Answer:

A. The accounting department prepares a shipping report authorizing the shipment of goods

Explanation:

Internal control over sales is part of the audit procedures for the sales and collection cycle.  Its purpose is to control the entire sales process so that there is no alteration in the related activities or in the documents associated with them. This type of control establishes parameters to disaggregate the tasks in several people, creates verification mechanisms so that the products delivered will be those already registered and controls that the goods or services are only delivered to customers with a good credit score.

According to the above, the response that shows an effective internal control over sales transactions is the A, since it establish a list of products authorized to ship, creating a control over the procedure avoiding errors that may appear.

4 0
3 years ago
Your client, Tom, asks you to prepare his financial statements. He is especially curious about his net worth. He asks you to exp
Vilka [71]

Answer: Balance sheet

Explanation: In simple words, balance sheet refers to the statement which is prepared by an entity at the end of the financial year for depicting its assets, liabilities and equity in hand at that particular point of time.

Balance sheet shows the net worth of an entity at the end of the year and can also be used to evaluate how much of the assets are funded with the capital and  for how much any liability has been taken over.

Thus, from the above we can conclude that the correct answer is balance sheet.

6 0
3 years ago
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