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
kati45 [8]
2 years ago
15

Pension data for Sterling Properties include the following: ($ in thousands) Service cost, 2021 $ 112 Projected benefit obligati

on, January 1, 2021 850 Plan assets (fair value), January 1, 2021 900 Prior service cost—AOCI (2021 amortization, $8) 80 Net loss—AOCI (2021 amortization, $1) 101 Interest rate, 6% Expected return on plan assets, 10% Actual return on plan assets, 11% Required: Assume Sterling Properties prepares its financial statements according to International Financial Reporting Standards (IFRS). The interest rate on high-grade corporate bonds is 6%. Determine the net pension cost.
Business
1 answer:
Lorico [155]2 years ago
4 0

Answer:

Net pension cost is $82,000.

Explanation:

The net pension cost can be determined as follows:

Details                                                 ($ in thousands)

Service cost, 2021                                         112

Interest cost (w.1)                                            51

Expected return on plan assets (w.3)          (90)

Amortization of prior service cost                  8

Amortization of net loss                              <u>     1      </u>

Net pension cost                                         <u>   82    </u>

Workings ($ in thousands):

w.1: Interest cost = Projected benefit obligation, January 1, 2021 * Interest rate = $850 * 6% = $51

w.2: Gain from expected return on the plan assets = (Plan assets (fair value), January 1, 2021 * Actual return rate on plan assets) - (Plan assets (fair value), January 1, 2021 * Expected return rate on plan assets) = ($900 * 11%) - ($900 * 10%) = $9

w.3: Expected return on plan assets = (Plan assets (fair value), January 1, 2021 * Actual return rate on plan assets) - Gain from expected return on the plan assets = ($900 * 11%) - $9 = $99 - $9 = $90

You might be interested in
Barbara is a producer in a monopoly industry. Her demand curve, total revenue curve, marginal revenue curve and total cost curve
andrey2020 [161]

Answer:

22

Explanation:

A monopoly will maximize profit at MR = MC ( marginal revenue = marginal cost)72

MR =MC

40 -0.5 Q = 4

-0.5 Q = 4 - 40 = -36

Q = -36 / -0.5 = 72

The price of the her product

Q = 160 - 4P

4P =  160 - 72 = 88

P = 88 / 4 = 22

4 0
3 years ago
Connor Company produces speaker systems for cars. Estimated sales (in units) in January are 40,000; in February 37,000; and in M
Vera_Pavlovna [14]

Answer:

Our answer is E 114,420

Explanation:

Production budget:    

                                                 Jan   Feb            Mar

Budgeted sales units  40000   37000           34000

Add: Ending inventory        12950   11900  

Total requirement         52950   48900  

Less: Beginning inventory 14000    12950  

Budgeted production units 38950 35950  

Purchase budget of Box:    

                                               Jan           Feb  

Budgeted production  38950 35950  

Bx required per unit   3          3  

Total requirement of Boxes 116850 107850  

Add: Ending inventory         21570  

Total boxes needed  138420  

Less: Beginning inventory 24000  

Budgeted Purchase boxes 114420  

Answer is E. 114420    

5 0
3 years ago
You see a television commercial for a product you may want to buy, and there is a telephone number you must call to place an ord
bulgar [2K]

Answer:

krkfkfgkgkgkgkf

Explanation:

nxnxnxxnxnxckfk

8 0
3 years ago
A client/server network is an example of ________ administration
sladkih [1.3K]
<span>A client/server network is an example of Central administration
In computer network, a central administration refers to something that enabled several computers to be connected under a single medium.
An example of The real life implication of a client/server net work is the system that we use for online multiplayer gaming</span>
4 0
3 years ago
Sandusky Company borrowed $28,000 from the Lakeside Bank by issuing a 10% three-year installment note. Sandusky agreed to repay
Marrrta [24]

Answer:

the amount of the interest expense associated with the second payment would be $1,954

Explanation:

According to the given data we have the following:

Amount borrowed= $28,000.00

10% interest=$28,000×0.10=$2,800

Therefore, Total outstanding at end of year 1=$28,000+$2,800

Total outstanding at end of year 1=$30,800

Sandusky agreed to repay the principal and interest by making annual payments in the amount of $11,259.21, therefore

Net balance at end of year 1= $30,800-$11,259.21

Net balance at end of year 1=$19,540.79

Hence, To calculate the amount of the interest expense associated with the second payment we would have to make the following calculation:

amount of the interest expense associated with the second payment= $19,540.79×10%=$1,954

6 0
3 years ago
Other questions:
  • Based on the lesson and your research, how would you fund a four-year college degree? In two to three sentences, explain your ch
    14·3 answers
  • Dita takes out a student loan from Everloan Bank. When she fails to make the scheduled payments for six months, Everloan advises
    14·1 answer
  • Under what circumstances would a firm be more likely to buy the required number of bonds
    12·1 answer
  • Who is the owner of Amazon
    13·2 answers
  • Fresh fish is not an effective form of money. What essential characteristic of money does fresh fish lack that most makes it ine
    12·1 answer
  • If D 0 = $1.75, g (which is constant) = 3.6%, and P 0 = $32.00, what is the stock's expected total return for the coming year?
    5·1 answer
  • A written customer complaint is received by mail about an error made by the firm that the firm resolves to the customer's satisf
    15·1 answer
  • During 2020, Dyrdek’s Skate Shop, Inc., had a cash flow to creditors of –$60,000 and the cash flow to stockholders for the year
    8·1 answer
  • Today, you borrowed $12,200 on your credit card to purchase some furniture. The interest rate is 16.8 percent, compounded monthl
    13·1 answer
  • A monopolist finds that a person’s demand for its product depends on the person’s age. The inverse demand function of someone of
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!