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
serious [3.7K]
3 years ago
11

The projected benefit obligation was $80 million at the beginning of the year. Service cost for the year was $10 million. At the

end of the year, pension benefits paid by the trustee were $6 million and there were no pension-related other comprehensive income (OCI) accounts requiring amortization. The actuary’s discount rate was 5%. The actual return on plan assets was $5 million although it was expected to be only $4 million. What was the total pension expense for the year?
Business
1 answer:
irinina [24]3 years ago
6 0

Answer:

$87 million

Explanation:

The projected benefit obligation (PBO) is a measurement of the present amount of money needed by a company to cover future pension liabilities. PBO uses how long the employee will work and any increased future obligations to the employee's pension.

Given that:

PBO at the beginning of the year = $80 million

Service cost for the year =  $10 million

Interest =  Discount rate × PBO at beginning of the year = 5% × $80 million = 0.05 × $80 million = $4 million

Actuarial (gain) Loss = Amount paid - Expected money = $5 million - $4 million = $1 million

Benefits paid paid by trustees = $6 million

The total pension expense for the year = PBO at year beginning + Service cost + interest - Actuarial (gain) Loss - benefits = $80 million + $10 million + $4 million - $1 million - $6 million = $87 million

You might be interested in
Harrod Company paid $4,800 for a 4-month insurance premium in advance on November 1, with coverage beginning on that date. The b
Cerrena [4.2K]

Answer:

Debit Insurance Expense, $2,400; credit Prepaid Insurance, $2,400.

Explanation:

The journal entry is given below

Insurance expense A/c Dr $2,400

        To Prepaid Insurance $2,400

(Being insurance expense is recorded)

The computation is shown below:

= Insurance premium ÷ number of months × required months

= $4,800 ÷ 4 months × 2 months

= $2,400 months

The 2 months is taken from November 1 to December 31

6 0
3 years ago
Lynette Company's Inventory balance at 12/31/04 was $200,000 and was $188,000 at 12/31/05. Its Accounts Payable balance e at 12/
Viefleur [7K]

Answer:

A) $704,000.

Explanation:

For computing the cash payments we need to calculate the following amounts which are as follows

Total purchases = cost of goods sold + ending inventory - opening inventory

= $720,000 + $188,000 - $200,000

= $708,000

Now cash payment to merchandise is

= Beginning account payable balance + purchased made - ending account payable balance

= $80,000 + $708,000 - $84,000

= $704,000

Hence, the correct option is A. $704,000

3 0
3 years ago
You've noticed that a significant number of your website's customers--36.2%--abandon their shopping carts at the first stage of
Sauron [17]
Allow people to check out as guests
7 0
2 years ago
A firm is weighing three capacity alternatives: small, medium, and large job shop. Whatever capacity choice is made, the market
Dvinal [7]

Answer:

<u>Since expected payoff for large job shop option is highest, firm should make large job shop option as capacity choice</u>

Explanation:

Expected payoff of any capacity alternative

= Probability of moderate acceptance x Payoff of moderate acceptance + Probability of strong acceptance x Payoff of strong acceptance

= 0.40 x Payoff of moderate acceptance + 0.60 x Pay off of strong acceptance

Thus Pay off for small job shop option

= 0.40 x 24000 + 0.6 x 54000

= 9600 + 32400

= $42,000

Pay off for medium job shop option

= 0.40 x 20000 + 0.60 x 64000

= 8000 + 38400

= $ 46,400

Pay off for large job shop option

= - 0.40 x 2000 + 0.60 x 96000

= - 800 + 57600

= $56,800

7 0
3 years ago
​the first thing you should do after an interview is to contact your references.
Genrish500 [490]
You should contact your references and make them aware that you listed their names and numbers on your application.
4 0
3 years ago
Other questions:
  • Brainliest Answer!! What Type of competitive situation is this?
    5·1 answer
  • Helen tells her nephew, Bernard, that she will pay him $100 if he will stop smoking for six months. Helen was hopeful that if Be
    10·2 answers
  • What does it mean to say that the confidence interval methods for the mean are robust against departures from​ normality? choose
    7·1 answer
  • A poultry farmer is debating whether to acquire Rhode Island Reds or Buff Orpingtons to lay the eggs he wants to sell. The fixed
    11·1 answer
  • In January, a customer buys 100 shares of ABC stock at 450. Eleven months later in December, the stock is trading at $60. The cu
    6·1 answer
  • What does purchasing insurance for a business reveal about the business owner’s attitude toward financial risk?
    11·1 answer
  • How to prepare for ipcc ?
    15·1 answer
  • Aaron purchased footballs from Matthew for $370. Matthew had purchased the footballs from Tom by providing Tom with a bad check.
    15·1 answer
  • The defect rate for data entry of insurance claims at Sadegh Kazemi Insurance Co. has historically been about 1.50​%. This exerc
    14·1 answer
  • quizlet The Electronic Frontier Foundation is critical of media companies for their efforts to __________.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!