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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

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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Cooperton Mining just announced it will cut its dividend from $4.01 to $2.57 per share and use the extra funds to expand. Prior

mina [271]

Answer:

$34.35

The price has fallen from $50.07 to $34.35 which means that Expansion will not be a good option.

Explanation:

Computation for the share price to expect after the announcement

Using this formula

Ke = [ D1 / P0 ] +g

Where,

D1 =$4.01

P0 = $50.07

g =3.4%

Let plug in the formula

Ke = [ D1 / P0 ] +g

Ke= [ $4.01 / $50.07] + 0.034

Ke= 0.0800+ 0.034

Ke= 0.1140

Second step is to find the Price after Expansion using this formula

P0 = D1 / [ Ke - g ]

Where,

D1=$2.57

Ke=0.1140

g=4.7%

Let plug in the formula

P0= $ 2.57 / [ 0.1140 - 0.047 ]

P0=$2.57/0.067

P0=$ 34.35

Based on this calculation, we can see that the price has fallen from $50.07 to $34.35 which means that Expansion will not be a good option.

Therefore the share price that you would expect after the announcement will be $34.35

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3 years ago

True or false: standard rules exist to help managers identify appropriate allocation bases.

tangare [24]

False, standard rules doesn't exist to help managers identify appropriate allocation bases.

Standard Rules refers to strong moral commitments or ethics that allows smooth working of an organisation. It is basically fundamental requirements to govern an organisation. It could play a role in appropriate allocation bases but doesn't exist for it rather to keep check on principles and equality in an organisation. They are not legally binding. But, appropriate allocation bases require judgement. Managers use- the direct method or the sequential (or step) method or the reciprocal method, to develop judgements about allocation bases. Hence, the statement is false.

More on allocation of rsources brainly.com/question/5322091

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2 years ago

Your client, Bo Regard, holds a complete portfolio that consists of a portfolio of risky assets (P) and T-Bills. The information

kondaur [170]

Answer:

The expected return on Bo's complete portfolio will be "10.32%".

Explanation:

The given question is incomplete. Please find attachment of the complete question.

According to the question, the given values are:

Port's expected return,

$R_p=12 \ percent$

T-bill's expected return,

$R_t=3.6 \ percent$

Port's weight,

$W_p=80 \ percent \ i.e.,\ 0.80$

T-bill's weight,

$W_t=20 \ percent \ i.e., \ 0.20$

Now,

The Bo's complete portfolio's expected return will be:

⇒ $W_p\times R_p+W_t\times R_t$

On substituting the given values, we get

⇒ $0.80\times 12 \ percent+0.20\times 3.6 \ percent$

⇒ $10.32 \ percent$

Note: percent = %

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3 years ago

True or False: A tax cut is less likely to change the composition of labor demand than a government spending increase.

MA_775_DIABLO [31]

Answer:

True

Explanation:

This is the case because tax cuts and government spending are instruments that could be used in expansionary fiscal policy.

Note that reduced taxes usually have a direct impact on the disposable income of a economy not the composition of labor demand. Tax cuts leads directly to consumption and savings increase, resulting from increase in disposable income in the economy.

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3 years ago

organizations following a(n) ____ strategy try to both minimize risk and maximize oppurtunity for profit, moving into new produc

VARVARA [1.3K]

Answer:

Imitation.

Explanation:

Organizations following an imitation strategy try to both minimize risk and maximize opportunity for profit, moving into new products or new markets only after innovators have proven their viability. Imitation strategy is one the most effective way of saving your time, energy and money. It is known as the low-cost strategy as well particularly when the option of choosing and selecting is too difficult or costly. This strategy has been widely and successfully used by many well-renowned brands, for example, Coca Cola, once has imitated RC Cola when they replicated their diet cola options, McDonald's has taken the idea of fast food chin from the White Castle.

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4 years ago