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sdas [7]
3 years ago
8

Ivanhoe, Inc. received the following information from its pension plan trustee concerning the operation of the company's defined

-benefit pension plan for the year ended December 31, 2021. 1/1/21 12/31/21 Accumulated benefit obligation 3600000 1660000 Net (gains) and losses $ 6670000 $ 148000 Projected benefit obligation 1450000 6855000 Pension assets (at fair value) 0 4036000 The service cost component of pension expense for 2021 is $523000 and the amortization of prior service cost due to an increase in benefits is $113000. The settlement rate is 11% and the expected rate of return is 7%. What is the amount of pension expense for 2021

Business
1 answer:
Setler79 [48]3 years ago
4 0

Answer:

The pension expense for 2021 = $543,500

Explanation:

Service cost = $523,000

Amortization of prior service cost = $113,000

Settlement rate = 11%

Projected benefit obligation = $1,450,000

Accumulated benefit obligation = $3,600,000

Note: The necessary calculations are in the table attached as a file to this solution.

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A june sales forecast projects that 6,000 units are going to be sold at a price of $10.50 per unit. the desired ending inventory
ohaa [14]
Purchases = Sales units + Closing inventory - Beginning Inventory
                  = 6,000 + (1,000 * 115%) - 1,000
                  = 6,150 units
7 0
3 years ago
A company has preferred stock with a current market price of $18 per share. The preferred stock pays an annual dividend of 4% ba
scZoUnD [109]

Answer:

Answer:

Dividend (D) = 4% x $100 = $4

Current market price (Po) = $18

Flotation cost (FC) = $1.50

Tax rate (T) = 40% = 0.40

Kp =   <u> D </u>

       Po-FC

Kp =   <u>  $4 </u>

        $18-$1.50

Kp = <u>$4 </u>

      $16.5

Kp = 0.24 = 24%

Explanation:

Cost of preferred stock equals dividend divided by the difference between current market price and flotation cost. Cost of preferred stock is not tax deductible.

3 0
3 years ago
When managers of firms in a competitive market observe falling profits, they may infer that the market is experiencing a. a viol
Oliga [24]

Answer:

c. the entry of new firms

Explanation:

  • The entry of the new firms in the market creating a  market supply curves to shift to the right side and as the curve shifts the markets price then starts to decline with it  
  • This declines the economic profits in the new and the existing firms as long as the profits exists  in the markets and entry will continue to shift to supply to the right.
  • The diversification of the melt and the fall in the monopoly of the firms start to take place.  
  • They take up resource ownership and technological developments. In short, they increase the competitiveness and bring rivalry into the market.
7 0
3 years ago
Medlock Company sold inventory on credit for $3,000, terms 2/10, n/30. The cost of the merchandise to Medlock was $2,400. How mu
Finger [1]

Answer:

Medlock will receive $2,940

Explanation:

Credit terms of 2/10, n/30 means there is a discount of 2% is available on payment of due amount within discount period of 10 days after sale with net credit period of 30 days.

According to given data

Sales = $3,000

As the payment is made within discount period, so discount will be availed

Discount  = $3,000 x 2% = $60

Now deduct the discount from due balance to calculate the amount received.

Amount Received = $3,000 - $60 = $2,940

4 0
3 years ago
Moyer Corporation is a specialty component manufacturer with idle capacity. Management would like to use its extra capacity to g
ludmilkaskok [199]

Answer:

$174,215

Explanation:

2,300 units of product

will require: 9 units of material F58

9 x 2,300 = 20,700 units of F58

The relevant cost will be the market price as it will be replenished and used in the future.

20,700 x $4.65 = $96,255‬

it will also require 7 units of material D66

2,300 x 7 = 16,100 units of D66

The minimum price for this will be the diposal value as currently aren't used and generate an inventory cost for the firm.

currently in stock 15,700 at $4.80 = $ 75,360

The difference will need to be purchased thus, market price.

purhcase of 400 units at $6.50    = $    2,600

Total cost:                                          $  77,960

Total cost of materials:

77,960 + 96,255 = 174,215

5 0
3 years ago
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