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
Nikolay [14]
3 years ago
12

Kenseth Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related val

ues for its pension plan assets.
Projected Plan
Benefit Assets
Obligation Value
2013 $2,000,000 $1,900,000
2014 2,400,000 2,500,000
2015 2,950,000 2,600,000
2016 3,600,000 3,000,000
The average remaining service life per employee in 2013 and 2014 is 10 years and in 2015 and 2016 is 12 years. The net gain or loss that occurred during each year is as follows: 2013, $280,000 loss; 2014, $90,000 loss; 2015, $11,000 loss; and 2016, $25,000 gain.
Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the four years, setting up an appropriate schedule.
Year
Minimum Amortization of Loss
2013 $
2014 $
2015 $
2016 $
Business
1 answer:
antiseptic1488 [7]3 years ago
5 0

Answer:

Year Minimum Amortization of Loss

2013 $0

2014 $3,000

2015 $ $6,000

2016 $1,000

Explanation:

Computation of the amount of net gain or loss amortized and charged to pension expense in each of the four years.

Corridor and Minimum Loss Amortization

Year 2013

Projected Benefit Obligation (a) $2,000,000

Plan Assets $1,900,000

10%Corridor 200,000

(10%×$2,000,000)

AccumulatedOCI (G/L) (a) $0

Minimum Amortization of loss $0

(a) As of the beginning of the year

Year 2014

Projected Benefit Obligation (a) $2,400,000

PlanAssets $2,500,000

10%Corridor 250,000

(10%×$2,500,000)

AccumulatedOCI (G/L) (a) $280,000

Minimum Amortization of loss $3,000 (b)

(b) ($280,000-$250,000)÷10 years

=$30,000÷10 years

=$3,000

Year 2015

Projected Benefit Obligation (a) $2,950,000

PlanAssets $2,600,000

10%Corridor 295,000

(10%×$2,950,000)

AccumulatedOCI (G/L) (a) $367,000(c)

Minimum Amortization of loss $6,000 (d)

(c) ($280,000-$3,000+$90,000)

=$367,000

(d) ($367,000-$295,000)÷12 years

=$72,000÷12 years

=$6,000

Year 2016

Projected Benefit Obligation (a) $3,600,000

PlanAssets $3,000,000

10%Corridor 360,000

(10%×$3,600,000)

AccumulatedOCI (G/L) (a) $372,000(e)

Minimum Amortization of loss $1,000 (f)

(e) $367,000-$6,000+$11,000

=$372,000

(f) ($372,000-$360,000)÷12 years

=$12,000 ÷12 years

=$1,000

Therefore the amount of net gain or loss amortized and charged to pension expense in each of the four years are:

Year Minimum Amortization of Loss

2013 $0

2014 $3,000

2015 $ $6,000

2016 $1,000

You might be interested in
Is debt finance the same as debt capital?
sveticcg [70]

Answer:

no they are not the same hope this helps

7 0
3 years ago
Alex invested $10,500 in an account that pays 6 percent simple interest. how much money will he have at the end of four years?'
Marizza181 [45]
The amount generated from the investment with simple interest is calculated through the equation,

           F = P x (1 + in)

where F is the future amount, P is the present worth, i is the decimal equivalent of the given interest and n is the number of interest period.

From this item it can be identified that,
   P = $10,500
   i = 0.06
   n = 4

Substituting the known values,

    F = ($10,500) x (1 + (0.06)(4)) 
 <em>   F = $13020</em>

Therefore, after four years, the amount of money that Alex will have is $13,020. 
4 0
3 years ago
Joe sold gold coins for $1,000 that he bought a year ago for $1,000. He says, "At least I didn't lose any money on my financial
sergejj [24]

Answer:

B) opportunity costs.

Explanation:

Opportunity cost is the fortified benefits when a choice is made. It is the sacrificed option from a  variety of possible choices. The value of opportunity cost is expressed as the cost of the next best alternative.

According to the economist, Joe made a loss because his opportunity cost would have yielded a better return. In evaluating the viability of a project, economists always consider the returns from the next best alternative. Joe would have made a profit if the returns from the sales of gold were higher than the 3 percent from a certificate of deposit.  Because Joe opted for the gold, he missed the chance to earn from the certificate of deposit. In economics, he made a loss.

3 0
2 years ago
On July 1, 2022, Cullumber Co. pays $ 22,400 to Pharoah Insurance Co. for a 4-year insurance contract. Both companies have fisca
Brrunno [24]

Journal Entries in the books of Pharoah Insurance Co are as follows:

Date              Account Titles and Explanation     Debit       Credit

July 1, 2022 Cash                                            $22,400

Unearned Service Revenue                                             $22,400

To record the receipt of payment for insurance contract for 4 years.

Date                          Account Titles and Explanation     Debit       Credit

December 31, 2022 Unearned Service Revenue         $2,800

Service Revenue                                                                            $2,800

To record the service revenue earned from July 1, 2022 to December 31, 2022.

Data Analysis:

July 1, 2022 Cash $22,400 Unearned Service Revenue $22,400

December 31, 2022 Unearned Service Revenue $2,800 Service Revenue $2,800 ($22,400 x 6/48)

Thus, only $2,800 is credited to the Service Revenue account for the year ended December 31, 2022.

Learn more on adjusting Unearned Service Revenue at brainly.com/question/14783594

3 0
3 years ago
OpenReader is an Internet lending library in which people list and lend their own books and borrow books from other members. It
Elis [28]

Answer:

affiliate marketing

Explanation:

When someone searches for a company' s product he or she enjoys , promote and sells such product and earns bonus or profit, it is called affiliate marketing. It is a situation whereby one(affiliate) earns a comissiom by promoting another company' s product.

Affiliate marketing is mostly done on the internet . Affiliates identify themselves with a brand they enjoy and then refer people to patronize it. By so doing, they earn a commission on every sale they make on behalf of the company.

Although some people(affiliates) goes to the extent by having a blog to promote a company' s product, one can start by just advertising the product

which will eventually leads to sales and then earn comission.

3 0
3 years ago
Other questions:
  • On september 1, 2018, fortune magazine sold 660 one-year subscriptions for $74 each. the total amount received was credited to d
    7·1 answer
  • A typical major requirement for a business major would be a course in: A.physics. B.music theory. C.economics. D.physical educat
    6·1 answer
  • The C.O.R.E Continuum identifies relationships that affect organizations’:
    10·1 answer
  • Richard Beck has a life insurance policy which he has modified to include an accidental death benefit payable to his son and dau
    13·1 answer
  • Tonya contributes $150,000 to Swan, Inc., for 80% of the stock. In addition, she loans Swan $600,000. The maturity date on the l
    7·1 answer
  • What are three reasons to study economics?
    14·1 answer
  • The marginal physical product of labor is Group of answer choices the slope of the total output curve at the relevant point. the
    6·1 answer
  • Which is an example of a meta-search engine?
    12·1 answer
  • Japan's great trading houses are called:_____________.
    15·1 answer
  • Keynesian theory is based on the concept that saving and consumption are influenced primarily by real current disposable income.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!