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Mazyrski [523]
3 years ago
14

On January 1, 2018, Tiffany Academy instituted a defined benefit pension plan for its employees. The annual service cost for eac

h year of 2018 and 2019 was $600,000. The interest rate used to determine the projected benefit obligation is 10%. Both the actual and the expected return on plan assets are 8% for both years. Tiffany funded the plan in the amount of $400,000 each January 1, beginning on January 1, 2018. What net pension liability should Tiffany report in its balance sheet for the year ended December 31, 2019
Business
1 answer:
Goryan [66]3 years ago
5 0

Answer:

$593,440.00

Explanation:

Calculation to determine What net pension liability should Tiffany report in its balance sheet for the year ended December 31, 2019

First step is to Compute the Interest Cost for 2019

Balance of Projected benefit Obligation on January 1, 2019 600,000.00

Interest Cost for 2019 (600000*10%) 60,000.00

Second step is to Balance of Plan assets on January

Beginning Balance of Plan Assets as on Jan 1, 2018 $         

Funding on Jan 1, 2018 400,000.00

Asd Actual return on December 31, 2018 (400000*8%) 32,000.00

Balance of Plan assets on December 31,2018 432,000.00

Add Current Funding on Jan 1, 2019 400,000.00

Balance of Plan assets on January 1, 2019 832,000.00

Third step is to Compute the Actual return for 2019

Actual return on December 31, 2019 (832000*8%) 66,560.00

Now let Compute The PENSION EXPENSE for the year 2019 $

Service cost 600,000.00

Add Interest cost (600000*10%) 60,000.00

Less Expected return on the plan assets (66,560.00)

(832000*8%)

Pension Expense for the year ended December 31, 2019 593,440.00

Therefore the net pension liability that Tiffany should report in its balance sheet for the year ended December 31, 2019 is $593,440.00

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Oxana [17]

Answer:

Land $81,500; Land Improvements $32,600; Building $48,900

Explanation:

Calculation for What should be the allocation of this property's costs in the company's accounting records

First step is to calculate the total value

Total value= $87,500 + $35,000 + $52,500

Total value= $175,000

Second step

Land appraised = $87,500 ÷ $175,000

Land appraised= 0.50

Land improvement = $35,000 ÷ $175,000

Land improvement = 0.20

Building appraised = $52,500 ÷ $175,000

Building appraised = 0.30

Third step is to calculate the Total Amount

Total Amount= $150,000 + $150,000 × 0.06 + $4,000

Total Amount= $150,000 + $9,000 + $4,000

Total Amount= $163,000

Last step is to calculate the allocation of this property's costs in the company's accounting records

Land appraised = $163,000 × 50%

Land appraised = = $81,500

Land improvement = $163,000 × 20%

Land improvement= $32,600

Building appraised = $163,000 × 30%

Building appraised = $48,900

Therefore What should be the allocation of this property's costs in the company's accounting records is :

Land $81,500; Land Improvements $32,600; Building $48,900

4 0
3 years ago
What happens to the price of a good or service when a shortage of that good or service occurs?
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Answer:

If shortage of goods and services occurs, obviously, the price will touch the sky, i. e. the price will increase twice or thrice the Real price...

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Henry Company traded in an old delivery truck for a new one. The old truck had a cost of $78,000 and accumulated depreciation of
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Answer:

The new truck will enter the account with the invoice value.

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ac dep old truck 44,000

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Old truck 78,000

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net-book value 34,000

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The new truck will enter the account with the invoice value.

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Actual Static Budget Production 54,000 units 60,000 units Machine-hours 985 hours 1,800 hours Fixed overhead costs for September
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Answer:

D.$54,000

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A flexible budget is a one which changes or adjusts with change in actual activity. The flexible amount is more reliable than the static amount. The static budget is one which is not adjusted with level of real activity. The machine hours are used as basis of adjustment for flexible budget. The amount of fixed overhead budgeted allocation cost is adjusted based on machine hours according to actual machine hours of 985 hours.

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Inductive reasoning is a form of reasoning in which the truth of the premises supports the conclusion, but does not guarantee it. A classic example of inductive reasoning is:

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In principle, it could be that the next crow observed is not black. In contrast to deductive reasoning, inductive reasoning has the advantage of being expansive, that is, the conclusion contains more information than is contained in the premises. Given its expansive nature, inductive reasoning is very useful and frequent in science and in everyday life. However, given its fallible nature, its justification is problematic. When are we justified in making an inductive inference, and concluding, for example, that all crows are black from a limited sample of them? What distinguishes a good inductive argument from a bad one? These and other related problems give rise to the problem of induction, whose validity and importance has continued for centuries.

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