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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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Dave and his partner are studying the strengths and weaknesses of their construction business, Ajax Construction, as well as res
jenyasd209 [6]

Answer:

SWOT Analysis.

Explanation:

Dave and his partner are studying the strengths and weaknesses of their construction business, Ajax Construction, as well as researching the opportunities and threats in the external environment. Dave and his partner are conducting a SWOT analysis. In SWOT analysis, we analyse our strengths and weaknesses, which comes from inside and we evaluate outside environment which can pose opportunities and threats on us. SWOT analysis is one the basic tool which can tell us what needs to be corrected and where we have to perform better and what segments we should serve, what new product we should enter in our portfolio. It also tell us what business we could be in and what business we should be in.

5 0
3 years ago
A company purchased $6,500 of merchandise on May 1 with terms of 2/10, net 30. On May 6, it returned $500 of that merchandise. O
viktelen [127]

Answer:

The cash paid on May 8 is: $5,880

Explanation:

Credit terms of 2/10, net 30 means that 2% discount for the payment within 10 days and the full amount to be paid within 30 days.

The company purchased $6,500 of merchandise on May 1. On May 6, it returned $500 of that merchandise.

The balance owed for merchandise = $6,500 - $500 = $6,000

On May 8, it paid the balance owed for merchandise, taking any discount it is entitled to.

The company took the appropriate discount:

2% x $6,000 = $120

The cash paid = $6,000 - $120 = $5,880

5 0
3 years ago
In a flexible budget performance report _____.
natulia [17]

Answer:

b. the budget is adjusted to the actual activity for the period.

Explanation:

A flexible budget performance report is a comparison between actual costs and revenues, and the budgeted income and expenses at the end of a period, based on actual performance.  The report shows the difference between the actual results and the estimated numbers.  Management uses the report to determine if the company's results were in line with management expectations.

The performance report is prepared at the end of a financial period.  It helps the management analyse any major variances between the actual performance at the estimated numbers at the beginning of a period.  The report helps the management identify the companies strong areas, and the sections that need improvements.

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3 years ago
The management team has asked you to reschedule the project so it finishes two weeks earlier without spending more money. They h
Tanya [424]

Answer:

Crash the schedule.

Explanation:

Fast-track can complete the task earlier but takes more money. Assign more experienced people will cost the management more money. Cut scope reduces the project requirement and finishes the task earlier. Therefore, options A B and D can not be the answer.

Crash the schedule (option C) is the answer because it allocates enough resources to complete the task earlier without spending more money.

5 0
3 years ago
Which of the following is the raw material for forging? Select one: a. Sand b. Solid metal c. Plastic d. Molten metal
cupoosta [38]

Forging is the process of applying thermal and mechanical energy to steel billets or ingots to result into a changed shape of the material while in a solid state. The raw material is solid metal in this case.

8 0
2 years ago
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