_____ is granted by suppliers when they ship materials, parts, or goods to a firm without requiring immediate payment.

The projected benefit obligation was $460 million at the beginning of the year. Service cost for the year was $25 million. At th

juin [17]

Answer:

The question is not complete:

Here is the complete question:

The projected benefit obligation was $460 million at the beginning of the year. Service cost for the year was $25 million. At the end of the year, pension benefits paid by the trustee were $21 million and there were no pension-related other comprehensive income accounts requiring amortization. The actuaries discount rate was 5%. The actual return on plan assets was $24 million although it was expected to be only $23 million.

What was the pension expense for the year?

Here is the answer: The pension expense is $25 million.

Explanation:

Pension is the form of defined benefit contribution plan which require employers to make certain periodic contribution on behalf of employees. This contribution is reported as an expense in the income statement if even though the benefit has not been enjoyed by the employees. To determine the value of this expenses to be included in the income statement, the components of the pension expenses are relevant.

Components of pension expense are service cost, interest cost, return on plan asset, amortization of prior service costs and gain or loss from change in asset value.

Here is the determination of the pension expense as required by the question.

$`M

Service cost 25

Interest ($460,000,000*5%) 23

Expected return on plan asset (23)

Amortization of prior service costs -

Gain or loss in change in value <u> -</u>

Pension expense <u> 25</u>

4 0

3 years ago

As a supervisor how to deal with gossiping in your workplace?

Korolek [52]

It should be not allowed as that can cause a lot of conflict

6 0

2 years ago

Read 2 more answers

n the 1930s, what caused Canada to respond by raising its tax on goods imported from the United States? the Glass-Steagall Act t

Misha Larkins [42]

In the 1930s Canada decided to raise taxes on goods imported in the United States in retaliation for the high tariffs that were created by the Hawley-Smoot Tariff. The Hawley-Smoot Tariff raised tariffs on nearly 20,000 imported goods to the United States to extremely high levels. This policy was put in place in an effort to protect American jobs following the Great Depression, but instead closed the U.S. economy off to the global market most likely hurting the American economy further.

3 0

3 years ago

Pump prices slide as crude oil falls to six-year low The average price for regular gasoline at U.S. pumps fell almost 4 cents i

max2010maxim [7]

Answer:

lower the cost of producing gasoline and increase the supply of gasoline

Explanation:

Crude oil is an input needed in the production of gasoline. If the price of crude oil falls, it would become cheaper to make gasoline and therefore the supply of gasoline would increase.

5 0

3 years ago

So why it is a ration decision to make sure the marginal benefits outweighs the marginal costs? (Be detailed, you can use exampl

Rzqust [24]

Answer:

For the business to make profits

Explanation:

Marginals revenue is the additional income realized from the sale of an extra unit. It is the revenue that a firm will gain by selling one more unit of a product or service.

Marginal cost is the expense incurred in the production of one more unit of a product. A business compares marginal revenue to marginal cost to decide if it will cease or continue with production and selling activities.

For a business to continue selling and make profits, marginal revenue must be greater than the marginal cost. In other words, the revenue realized by selling one extra unit must exceed the cost of producing that item. Selling one more unit when the marginal cost is more than the marginal revenue will result in a loss.

If the marginal revenue from a computer is $40 and the marginal cost is $50, selling on extra computer results in a loss of $10. But if the marginal revenue from the same computer is $60, the sale on one more unit will be a gain of $10.

6 0

3 years ago